Does Acquisition of Uber Eats’ India Operations by Zomato Lead to Financial Synergy? An Introspection

Authors

  • Sudipta Ghosh Assistant Professor Department of Commerce (UG & PG) Prabhat Kumar College, Contai
  • Jharna Dutta Associate Professor Bharatiya Vidya Bhavan Institute of Management Science Kolkata
  • Lalit Kumar Joshi Assistant Professor of Commerce Kazi Nazrul University Asansol

DOI:

https://doi.org/10.33516/maj.v59i2.82-85p

Keywords:

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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Published

2024-03-15

How to Cite

Ghosh, S., Dutta , J., & Joshi , L. K. (2024). Does Acquisition of Uber Eats’ India Operations by Zomato Lead to Financial Synergy? An Introspection. The Management Accountant Journal, 59(2), 82–85. https://doi.org/10.33516/maj.v59i2.82-85p

Issue

Section

Merger and Acquisition

References

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Published Reports of Zomato.

Samiya Mubeen, S, and Nagaraju, Y. (2017). Impact of Mergers & Acquisitions on Financial Performance – A Study of Select Indian Companies. Adarsh Journal of Management Research,10(2), 46-55.

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