Tuesday morning got breaking news in for of Zomato announcing that it has acquired Uber’s food delivery Uber Eats in India in an all-stock deal. The deal is said to be closed for around $300-$350 Million. After this deal has given Uber 9.99% ownership in Zomato.

After the acquisition, Uber Eats India will discontinue its operations in the country and redirect it’s Delivery Partners, Restaurants and Users to the Zomato App, Effective starting from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” Zomato CEO Deepinder Goyal said.

Dara Khosrowshahi, CEO of Uber, said: “Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication.”

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local rides business, which is already the clear category leader,” Mr. Khosrowshahi said.

Launched in 2017 in India, Uber Eats had around 26,000 partner restaurants and has a 12% market tapped in the food delivery market. Uber Eats was in direct competition with Zomato & Swiggy.

Sources close to UBER said that the food business is done and dusted, Not it is time for Uber to focus on its ride business and expand and dominate the tire 2 cities in India.