UberEats is the food delivery business company that was acquired by Zomato for $206 million.

Background:
UberEats is a subsidiary of Uber Technologies Inc., a multinational ride-hailing company. It was launched in 2014 as a standalone app for food delivery services. UberEats operates in numerous countries and cities around the world, connecting consumers with local restaurants and providing delivery services.

Zomato:
Zomato is an Indian restaurant aggregator and food delivery platform. It was founded in 2008 and has since grown to become one of the largest food delivery companies in India. Zomato operates in more than 10,000 cities across 24 countries and serves millions of customers globally.

Acquisition:
In January 2020, Zomato announced that it had acquired UberEats' operations in India. The deal was valued at $206 million, making it one of the largest acquisitions in the Indian food delivery industry. As part of the agreement, UberEats users in India were redirected to Zomato's platform, and UberEats' restaurant partners and delivery partners became part of Zomato's network.

Reasons for Acquisition:
1. Market Consolidation: The acquisition of UberEats allowed Zomato to consolidate its position as one of the leading food delivery players in India. By acquiring UberEats' user base and restaurant partnerships, Zomato expanded its market share and strengthened its competitive position against rivals like Swiggy.

2. Increased Operational Efficiency: The acquisition also helped Zomato improve its operational efficiency by leveraging UberEats' technology and expertise. This included integrating UberEats' delivery fleet and logistics capabilities into Zomato's existing infrastructure, enabling faster and more reliable food deliveries.

3. Expansion of Customer Base: UberEats' user base provided Zomato with an opportunity to reach a larger customer base and increase its order volume. This allowed Zomato to attract more restaurants to its platform, offering them a wider customer reach and potential business growth.

4. Synergies and Cost Savings: The acquisition created synergies between Zomato and UberEats, resulting in cost savings and operational efficiencies. By combining resources and streamlining operations, Zomato aimed to achieve better profitability and sustainability in the highly competitive food delivery market.

Conclusion:
Zomato's acquisition of UberEats was a strategic move to strengthen its position in the Indian food delivery market. The deal provided Zomato with significant market consolidation, operational efficiency, increased customer base, and cost savings. This acquisition has further fueled the competition in the food delivery sector, benefitting consumers with more choices and improved services.