Uber has formally agreed to acquire German-based food delivery giant Delivery Hero in an all-stock deal valued at an estimated £11.6 billion ($14.8 billion). This significant move, following weeks of market speculation, is set to nearly double Uber's global operational footprint, extending its reach into approximately 100 new markets across Europe, the Middle East, Latin America, and Asia.
The acquisition, if finalised, would establish Uber's delivery platform as one of the largest worldwide, specifically positioning it as a dominant force outside of the Chinese market. This expansion is expected to intensify competition with other major players in the food delivery sector, such as DoorDash and Just Eat.
As part of the broader transaction, Delivery Hero has also entered into a separate agreement to divest its businesses in 14 markets where Uber Eats already has an established presence. These operations will be sold to the New York-based investment firm SSW Partners for an estimated £1.25 billion ($1.6 billion).
The acquisition is not yet a done deal and remains subject to several conditions, including regulatory scrutiny in various jurisdictions. Uber, which was already Delivery Hero's largest shareholder, has stipulated a minimum acceptance threshold requiring 50% plus one share of Delivery Hero's outstanding capital. Prosus, another significant shareholder in Delivery Hero, has publicly committed to selling its 17% stake as part of the agreement, according to the official announcement.
Dara Khosrowshahi, CEO of Uber, commented on the strategic importance of the deal, stating, "Together, we’ll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders." This ambitious expansion underscores Uber's commitment to consolidating its position in the global delivery market.