US ride-hailing and food delivery giant Uber is understood to be considering an increased offer for Delivery Hero, the German-based global food delivery group. This follows reports that an initial bid of approximately €11.5 billion (around £9.8 billion) was rejected by a major shareholder in the European firm. The proposed acquisition highlights the intense competition and consolidation trend within the rapidly evolving food delivery sector.
Sources close to the negotiations suggest that Uber, headquartered in San Francisco, directly approached a significant investor in Delivery Hero with its proposal. While the specific reasons for the rejection of the initial offer have not been publicly disclosed, it indicates that Delivery Hero's shareholders may value the company higher than Uber's first valuation.
Delivery Hero operates a vast network of food delivery services across numerous countries, though it notably sold its German operations to Takeaway.com (now part of Just Eat Takeaway.com) in 2018. Its brands, such as Foodpanda, are prominent in Asia, Europe, Latin America, and the Middle East, offering a substantial geographical reach that would complement Uber Eats' existing global presence.
For the UK market, a successful acquisition could have several implications. While Delivery Hero does not directly operate a major consumer-facing brand in the UK, increased consolidation at an international level often leads to shifts in competitive dynamics. Uber Eats is a dominant player in the UK, alongside Just Eat and Deliveroo. A stronger, more expansive Uber could potentially leverage its enhanced global scale to influence pricing strategies, service offerings, and even driver remuneration across its various markets, including the UK.
The move by Uber underscores a broader strategy among technology giants to expand their service ecosystems and capture larger shares of consumer spending. The food delivery market, which saw significant growth during the pandemic, continues to be an area of strategic interest, despite facing challenges such as rising operational costs and intense competition for market share.