Uber Technologies Inc. has announced an agreement to acquire German food delivery company Delivery Hero SE in a deal valued at approximately $14.8 billion, marking one of the largest transactions in the global food delivery industry. The acquisition, which remains subject to regulatory approvals, will significantly expand Uber's international footprint by adding Delivery Hero's operations across 50 markets. Once completed, Uber's food delivery business will operate in 99 markets worldwide, up from its current presence in 79 countries.
Under the agreement, Uber will pay €41.50 per share for Delivery Hero, representing a premium of about 26% over its initial €33-per-share offer made in May. The improved offer boosted investor confidence, with Delivery Hero's shares rising sharply this year despite a slight decline in trading following the announcement. Uber said it will finance the acquisition through a combination of available cash and new debt, supported by a €14 billion bridge loan arranged for the transaction.
The acquisition reflects the ongoing consolidation of the global food delivery sector, which experienced rapid growth during the COVID-19 pandemic before entering a phase of mergers and acquisitions. Uber has been pursuing strategic international expansion to strengthen its competitive position, while rivals have also been actively reshaping the market. Recent industry deals include DoorDash's acquisition of Deliveroo and Prosus' agreement to acquire Just Eat Takeaway.com, highlighting increasing competition among major delivery platforms.
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As part of the transaction, Uber has committed to retaining Delivery Hero's headquarters in Berlin and preserving its corporate workforce until at least 2029. The company also plans to invest approximately €2 billion in Germany by 2031, reinforcing its long-term commitment to the country. Meanwhile, major shareholder Prosus will sell its entire 16.8% stake in Delivery Hero as part of the acquisition. Delivery Hero, founded in 2011, had recently been undergoing a strategic review amid pressure from investors seeking asset sales and operational restructuring.
Alongside Uber's acquisition, investment firm SSW Partners will separately acquire Delivery Hero's businesses in 14 additional markets for approximately $1.6 billion. These assets, which include operations in Austria, Norway, Spain, and Sweden, will be managed by SSW until suitable buyers are identified. The arrangement is expected to help address potential regulatory concerns by reducing market concentration in certain regions. If approved, the transaction will reshape the competitive landscape of the global food delivery industry and further strengthen Uber's position as one of the world's leading mobility and delivery platforms.
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