UberEATS, Zomato competing to buy delivery startup Runnr

By : |May 15, 2017 0

Food-tech startup Zomato and Uber’s food delivery service, UberEATS are in a race to acquire delivery startup Runnr, reports Economic Times.

Citing sources, the report said that both the companies have given a term sheet to Runnr, and the offer from the US-based cab-hailing application is pegged to be higher. While UberEATS has pegged the company’s valuation at $50 million, Zomato is offering nearly $20 million in an all-stock deal. The report also mentioned that Carthero Technologies Pvt. Ltd, which operates Runnr, is looking to raise $6-10 million in fresh investment.

CIOL UberEATS, Zomato competing to buy delivery startup Runnr

                                 

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Runnr, backed by Nexus Venture Partners, Blume Ventures and Sequoia Capital, has struggled to raise funds in the recent past. It has raised about $20-25 million since inception in 2015.

Runnr acquired Mumbai-based food delivery startup Tinyowl Technology Pvt. Ltd in June 2016 and launched a consumer-facing food delivery platform a couple of months later. The consumer-facing business has since been suspended.

UberEATS recently launched its services in the Indian market starting with Mumbai. The food-delivery app has partnered with 200 restaurants to help bring food to consumers in a convenient and reliable manner anytime, anywhere.

CIOL UberEATS, Zomato competing to buy delivery startup Runnr

Zomato has witnessed remarkable growth in its newly launched food ordering business with revenues from the vertical jumping eight-fold from the previous year to around $9 million in FY2016-17.

 

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