Uber Technologies is set to bolster its global presence by acquiring Delivery Hero, a prominent food delivery company based in Germany, in a transaction valued at $14.8 billion. This strategic acquisition will significantly extend Uber’s reach across 50 international markets, enhancing its competitive edge in the rapidly evolving food delivery industry.
As outlined in the agreement, Uber will purchase Delivery Hero’s core global operations at a price of €41.50 ($47.60) per share. The deal also involves acquiring shares from major stakeholder Prosus. Additionally, investment firm SSW Partners will take over Delivery Hero’s operations in 14 specific markets, including Austria, Norway, Spain, and Sweden, for approximately $1.6 billion, with plans to eventually sell these assets individually.
The move comes amid a trend of consolidation within the global food-delivery sector, which saw significant growth during the Covid-19 pandemic. To navigate the competitive landscape, major players in the industry have increasingly relied on mergers and acquisitions to fortify their international positions. Uber, in particular, has been actively pursuing expansion strategies overseas, while its competitors have also been making similar moves.
In response to investor pressure for restructuring and asset sales, Delivery Hero had initiated a strategic review of its operations before the acquisition agreement. This deal is expected to significantly enhance Uber’s standing in the global food-delivery market, further solidifying its position as a key player.