UberEATS, Zomato competing to buy delivery startup Runnr

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.

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.

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.