Shares in Delivery Hero soared on Friday after a report emerged that Uber Technologies is considering a takeover of the German food delivery group. The stock jumped as much as 15% in early trading on the Frankfurt Stock Exchange before paring some gains, closing the session up around 11%.
The rally came after Bloomberg News, citing sources familiar with the matter, reported that Uber has held early-stage discussions about a possible acquisition. The talks are said to be confidential and may not lead to a deal. Delivery Hero declined to comment, while Uber did not respond to requests for comment.
For UK investors, the development is significant because Delivery Hero has a substantial presence in the European and Middle Eastern markets, and any tie-up with Uber could reshape the competitive landscape in online food delivery. The sector has seen intense price competition and margin pressure in recent years, with companies seeking scale to improve profitability.
Analysts at Jefferies noted that a deal would give Uber a stronger foothold in markets where it currently has limited exposure, particularly in the Middle East and parts of Asia. However, they cautioned that regulatory hurdles in several jurisdictions could complicate any transaction. 'While a tie-up makes strategic sense, antitrust authorities in Europe and elsewhere are likely to scrutinise it closely,' they wrote in a note to clients.
The news also lifted shares of other delivery companies, with Just Eat Takeaway.com rising 2.5% in London and Deliveroo adding 1.8%. The broader FTSE 100 index was flat on the day, as gains in consumer stocks offset losses in energy and mining shares.