introduction

Executive summary
Situation overview
1. Before evaluating the terms of a deal, we need to evaluate whether
or not a merger or acquisition is practical.
2. ○ Analyze the potential motivations for a deal between the
companies involved
3. Perform an in-depth analysis of the industry and company.
4. What is the strategy adopted by Zomato in this acquisition?
5. Does this deal fit within its overall strategy for Zomato?
6. Where are the companies in their business life cycle?
7. Does this deal make sense for Zomato or Uber Eats?
Situation overview
1. Before evaluating the terms of a deal, we need to evaluate whether or not a merger or
acquisition is practical.
• A merger or acquisition is a practical option for Zomato and Uber Eats if it allows them to
achieve their strategic goals. For Zomato, the acquisition of Uber Eats would allow them
to:
* Expand their market share in India
* Gain access to Uber Eats' technology and delivery network
• Reduce their operating costs
For Uber Eats, the acquisition by Zomato would allow them to:
* Recover their initial investment in India
* Exit the online food delivery market in India
* Gain access to Zomato's technology and restaurant discovery platform
Situation overview
2. Analyze the potential motivations for a deal between the companies involved

The potential motivations for a deal between Zomato and Uber Eats include:

**Competition:** The online food delivery market in India is highly competitive. The acquisition of Uber Eats
would allow Zomato to solidify their position as the market leader.

**Economies of scale:** By combining their operations, Zomato and Uber Eats could achieve economies of
scale, which would allow them to reduce their operating costs.

**Technology:** Zomato and Uber Eats have different strengths in terms of technology. The acquisition would
allow them to combine their strengths and create a more comprehensive technology platform.

**Market share:** Zomato has a larger market share than Uber Eats in India. The acquisition would allow Uber
Eats to recover their initial investment and exit the market.
 Situation overview
3. Perform an in-depth analysis of the industry and company:
The online food delivery market in India is growing rapidly. The market is expected to grow at a CAGR of 18% from 2020 to 2025. Zomato
and Uber Eats are the two leading players in the market. Zomato has a market share of 30%, while Uber Eats has a market share of 20%.

Zomato is a well-established company with a strong brand name. They have a large customer base and a comprehensive technology
platform. Uber Eats is a smaller company, but they have a strong delivery network.
4. What is the strategy adopted by Zomato in this acquisition?
The strategy adopted by Zomato in this acquisition is to become the dominant player in the online food delivery market in India. The
acquisition of Uber Eats would allow Zomato to achieve this goal.
5. Does this deal fit within its overall strategy for Zomato?
Yes, the acquisition of Uber Eats fits within Zomato's overall strategy. Zomato's overall strategy is to become the dominant player in the
online food delivery market in India. The acquisition of Uber Eats would allow Zomato to achieve this goal.

6. Where are the companies in their business life cycle?

Zomato is in the growth stage of its business life cycle. They are growing rapidly and are expanding their market share. Uber Eats is in
the decline stage of its business life cycle. They are losing market share and are considering exiting the market.
7. Does this deal make sense for Zomato or Uber Eats?
The deal makes sense for both Zomato and Uber Eats. Zomato would benefit from the acquisition by gaining market share, access to
technology, and reduced operating costs. Uber Eats would benefit from the acquisition by recovering their initial investment and exiting
General Environment
• Demographic
• ■ Population size, ethnic mix, income distribution
• ○ Economic
• ■ Inflation rates, GDP, interest rates, personal savings rates
• ○ Global
• ■ Important political events, geopolitical risks, industrializing
• countries
• ○ Technological
• ■ Product innovations, new communication technologies, focus
• on private and government-supported R&D expenditures.
Population Size
General Environment
1.38 Bn
• Demographic
• ■ Population size, ethnic mix, income distribution
Ethnic Mix

Hindus Muslims Christians

Sikhs Buddhists Jains
Others
Economic
Inflation rates, GDP, interest rates, personal savings rates
 Industrializing Countries
•Brazil
Global
•China
Important political events, geopolitical risks, industrializing countries
•India
Political Events •Indonesia
•Mexico
COVID-19 pandemic:
•Malaysia
The COVID-19 pandemic was a major global event that had a significant impact on politics in India.
•India-China border standoff: •Vietnam
The India-China border standoff was a major geopolitical risk in 2020. •Turkey
•Farmers' protests: •Thailand
The farmers' protests were a series of protests that erupted in India in 2020 following the passage of three agricultural laws by the Indian
government.
•Delhi riots:
The Delhi riots were a series of communal riots that erupted in Delhi, India in February 2020.
•Maharashtra political crisis:
The Maharashtra political crisis was a political crisis that erupted in Maharashtra, India in October 2020.
Geopolitical Risks

•The rise of China: China's rise as a global power is one of the most significant geopolitical risks of the 21st century. China's
growing economic and military power is challenging the status quo in the world order, and it is unclear how other countries will
respond to China's rise.
•The U.S.-China trade war: The U.S.-China trade war was a major geopolitical risk in 2020. The trade war led to increased tensions
between the two countries, and it had a significant impact on the global economy.
•The India-China border standoff: The India-China border standoff was another major geopolitical risk in 2020. The standoff
Technological
Product innovations, new communication technologies, focus on private and government-supported R&D expenditures

•Product innovations:
• India's National Payments Corporation of India (NPCI) launched the Unified Payments Interface (UPI), a real-
time payment system that allows users to make payments instantly using their smartphones.
• The Indian government launched the Bharat Net project, which aims to provide broadband internet
connectivity to all villages in India.
• Indian companies such as Flipkart and Amazon launched their own voice-activated personal assistants, which
can be used to control smart home devices and make purchases.
•New communication technologies:
• The Indian government launched the 5G spectrum auction, which will allow telecom companies to offer faster
and more reliable mobile internet services.
• Indian companies such as Reliance Jio and Airtel are investing heavily in 5G infrastructure.
• The Indian Space Research Organisation (ISRO) launched the GSAT-7A satellite, which will provide high-
speed internet connectivity to remote parts of India.
•Focus on private and government-supported R&D expenditures:
• The Indian government increased its spending on research and development (R&D) to \$10 billion in 2020.
• Private companies in India are also investing heavily in R&D, with some of the biggest spenders being Tata
Consultancy Services (TCS), Infosys, and Wipro.
• The Indian government is also promoting the development of start-ups through initiatives such as the Startup
India program.
Industry overview
• Industry Definition:
• The online food delivery industry in India is a sector of the foodservice industry that facilitates the delivery of food from restaurants to consumers. Online food delivery
platforms allow customers to order food from a variety of restaurants, view menus, track their orders, and pay for their meals online.
• Industry Size:
• The online food delivery market in India was valued at $3.9 billion in 2020 and is expected to grow at a CAGR of 18% from 2021 to 2025.
• Industry Growth:
• The online food delivery industry in India is growing rapidly due to a number of factors, including:
• The increasing demand for convenience
• The growing popularity of online ordering
• The rising penetration of smartphones and internet access
• The increasing number of working professionals
• The growing popularity of food delivery as a social activity
• Industry Trends:
• Some of the key trends in the online food delivery industry in India include:
• The growth of cloud kitchens
• The increasing adoption of AI and machine learning
• The expansion into new markets
• The growth of food delivery aggregators
• Industry Drivers:
• The key drivers of the online food delivery industry in India include:
• The increasing demand for convenience
• The growing popularity of online ordering
• The rising penetration of smartphones and internet access
• The increasing number of working professionals
• The growing popularity of food delivery as a social activity
• Industry Challenges:
• The key challenges facing the online food delivery industry in India include:
Industry overview
Market Analysis
1. The online food delivery industry in India is expanding due
to the rise of smartphone users and affordable options.
2. The internet penetration and major players expanding to
smaller towns and cities are driving growth.
3. The industry is driven by incentives like discounts and
memberships, increased funding, and self-owned delivery
fleets.
4. The growing number of white-collar workers and double-
income families driving the market.
5. The economy and household income are expected to drive
the market, with the younger population with higher
disposable incomes driving food consumption patterns.
 Business overview- Zomato
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Business overview-Uber Eats
• Company profile: Uber Eats India is a food delivery platform that was launched in 2017. It is a subsidiary of Uber Technologies, Inc., a transportation network company that operates ride-
hailing, food delivery, and freight transportation services.
• Products and services: Uber Eats India offers a variety of food delivery services, including:
• Restaurant delivery: Customers can order food from a variety of restaurants on the Uber Eats app and have it delivered to their home or office.
• Grocery delivery: Customers can order groceries from a variety of stores on the Uber Eats app and have them delivered to their home.
• Package delivery: Customers can use Uber Eats to deliver packages to friends, family, or colleagues.
• Market share: In 2020, Uber Eats India had a market share of 15% in the online food delivery industry in India. The top two players in the market were Swiggy and Zomato, which had
market shares of 40% and 30%, respectively.
• Competitors: The main competitors of Uber Eats India in the online food delivery industry in India are:
• Swiggy
• Zomato
• Foodpanda
• Domino's Pizza
• KFC
• Financial performance: In 2020, Uber Eats India reported a loss of \$200 million. This was due to the company's high marketing and promotional expenses, as well as the competitive nature
of the online food delivery market in India.
• Management team: The management team of Uber Eats India includes:
• Amit Jain, CEO
• Bhavik Rathod, COO
• Saurabh Aggarwal, CMO
• Company culture: Uber Eats India has a company culture that is focused on innovation, collaboration, and customer service. The company encourages its employees to think outside the box
and come up with new ideas to improve the customer experience.
• Business strategy: The business strategy of Uber Eats India is to continue to grow its market share in the online food delivery industry in India. The company plans to do this by expanding
into new cities and towns, partnering with more restaurants, and offering new services such as grocery delivery and package delivery.
• Industry trends: The online food delivery industry in India is growing rapidly. This is due to a number of factors, including the increasing demand for convenience, the growing popularity
of online ordering, and the rising penetration of smartphones and internet access.
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