Zomato and UberEATS collectively acquire Runnr, a food-delivery and logistics startup. The deal would value the startup at $50 million whereas Zomato itself is marked at $30 million.
Runnr has emerged after the amalgamation of TinyOwl, food delivery venture and Roadrunnr, hyperlocal logistics. These are two well funded and high profile startups of 2015 and collectively brought more than $50 million through subsidizing round.
One of the informers who is well aware with the deal said that, “They are also in the midst of discussions with financial investors for a $6-10 million funding round,”.
Services of Runnr
The company was started last year as a consumer facing food Delivery Company and was soon started competing with the other contenders in this arena such as Zomato, Foodpanda, and Swiggy. Recently, it had shut down its consumer facing food delivery services and gone back to logistics leg which is focused on other food delivery entities.
Deal Yet Be Finalised
As per him there are three choices available out of which one has to be chosen. Zomato and UberEATS, both of them have placed their bids of offer at different valuation and now rest all resides with the board members.
There might be a case where the company may go ahead with the financing round as there is no complete unison in selling the company as a whole. A term sheet is a non-official assention for a potential speculation.
Reaction Of Trio About The Deal
Runnr and Zomato didn’t respond on this deal whereas one of the representatives of UberEATS said that “this was a baseless speculation”.
Funding Raised By Runnr
A year ago Runnr had brought around $7 million in its new avataar from its current speculators Blume Venture Partners and #Nexus Venture Partners whereas #Sequoia Capital did not take part in the subsidizing round.
Runnr And Its Conetnders’ Records
Runnr has come up as an interesting option as currently delivery and logistics are being looked upon as the key factors in defining customer experience. Other players in this field offer various choices in the matter where Swiggy prefers its own fleet of delivery guys with over 80,000 orders being delivered by them on daily basis whereas Zomato depends on outsourcing this option for it’s 60,000 regular orders.
Funding Raised By Its Rivals
Swiggy is about to arrange another round of financing from Naspers and Zomato are nearly following Uber’s moves in this arena of business.
UberEATS has associated with almost 200 restaurants in selected territories of Mumbai alongside 100 accomplices to commence its operations with a vision to be in the main six urban areas of the nation by end of the year.