Uber Technologies has launched a takeover bid for Delivery Hero, the Berlin-headquartered food delivery platform, in what would be one of the largest consolidation plays in the sector. The offer, confirmed by sources close to the process, values Delivery Hero at approximately €11 billion, though final terms remain under negotiation. The move signals Uber's ambition to dominate global food delivery markets beyond its core US and European strongholds.
Shares in Delivery Hero jumped more than 18% in early Frankfurt trading on Thursday, hitting €38.50, after news of the bid broke. Uber's shares edged up 1.2% in pre-market activity in New York, reflecting cautious optimism among investors. The FTSE 250, which includes several UK-listed delivery and logistics firms, slipped 0.3% to 20,450 points as traders weighed the implications for domestic competitors such as Deliveroo and Just Eat Takeaway.
For UK investors and pension holders, the deal carries significant weight. Many large UK pension funds hold stakes in global tech and delivery stocks through index-tracking vehicles. A successful acquisition would further consolidate the sector, potentially reducing competition and squeezing margins for smaller players. Analysts at Shore Capital noted that the bid underscores the pressure on mid-tier delivery firms to scale up or face acquisition themselves. 'This is a clear signal that the market is moving toward oligopoly,' said one analyst, speaking on condition of anonymity.
The deal would combine Uber Eats, already a dominant force in the UK and US, with Delivery Hero's extensive network across Asia, the Middle East, and parts of Europe. Delivery Hero operates brands including Foodpanda and Talabat, covering more than 70 countries. However, regulatory hurdles are expected. Competition authorities in the EU and UK may scrutinise the merger for potential anti-competitive behaviour, particularly given Uber's existing market share in several European cities.
Delivery Hero's board is expected to review the offer in the coming weeks, though no formal recommendation has been made. The company has faced pressure from activist investors to improve profitability after years of heavy spending on expansion. Uber, meanwhile, has been seeking to diversify beyond ride-hailing and has made food delivery a core pillar of its growth strategy under CEO Dara Khosrowshahi.