Does Acquisition of Uber Eats’ India Operations by Zomato Lead to Financial Synergy? An Introspection
DOI:
https://doi.org/10.33516/maj.v59i2.82-85pKeywords:
No keywords.Abstract
Mergers and Acquisitions (M & A) have emerged as an imperative mechanism in the business globe to attain escalating market reach, maximizing synergies and eventually enhancing pecuniary proficiency. Uber was incapable to have an impact on the marketplace in India which suffered an enormous loss in the year 2019. In view of that, on 21st January 2021, Zomato acquired the Indian operation of Uber Eats in an all-stock arrangement.
In this background, the prime intention of this study is to analyze the financial effect due to acquisition of Uber Eats’ India operations by Zomato from the financial year 2018-19 to the financial year 2022-23. In this respect, both absolute and relative measures are used to appraise the pecuniary recital of Zomato. Furthermore, average performances of the elected recital indicators are premeditated to facilitate comparison between the two subperiods of the cram.
The findings of the study reveal positive impact on the profitability ratios, thereby leading to financial synergy after acquisition of Uber Eats’ India operations by Zomato. Overall, it can be concluded that acquisition by Zomato acts as a good strategy for its corporate restructuring.
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