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Delivery Hero Board Backs Uber's $15 Billion Takeover Bid

Delivery Hero's board has recommended shareholders approve Uber's $15 billion takeover offer, which could create one of the world's largest on-demand food delivery platforms.

  • Delivery Hero's supervisory and management boards have endorsed Uber's $15 billion takeover offer.
  • The deal, if approved, would double Uber's global footprint in food delivery.
  • Prosus, a major shareholder, has agreed to sell its 17% stake in Delivery Hero.

Delivery Hero's supervisory and management boards have signed off on Uber's $15 billion takeover offer, recommending that shareholders approve the deal. The boards stated that the offer is in the best interests of the company, its shareholders, employees, and other stakeholders, deeming the price "fair and adequate" and noting its potential to "accelerate product innovation."

If approved, the acquisition would double Uber's global footprint and establish its delivery platform as one of the largest worldwide outside of China. This could also enhance Uber's competitive position against rivals such as DoorDash and Just Eat Takeaway.

Uber, already the largest shareholder in Delivery Hero, has set a minimum acceptance threshold of 50% plus one share of Delivery Hero's outstanding share capital. Major shareholder Prosus has also agreed to sell its 17% stake. This move follows Delivery Hero's prior agreement to sell its businesses in 14 markets where Uber Eats operates to SSW Partners for $1.6 billion.

This proposed tie-up is the latest in a series of consolidations within the on-demand delivery industry. Over the past 18 months, Uber acquired Turkey-based Getir for $335 million, Grab announced plans to buy Delivery Hero's Foodpanda business in Taiwan for $600 million, and DoorDash agreed to pay $3.87 billion for the UK's Deliveroo.

Why this matters: The potential acquisition could significantly reshape the global on-demand food delivery market by creating one of the largest platforms.

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