Uber Technologies is set to broaden its international reach by acquiring the German food delivery giant Delivery Hero for a substantial $14.8 billion. This strategic move will expand Uber’s operations across 50 international markets, underscoring the company’s commitment to solidifying its position in the global food delivery sector.
The agreement stipulates that Uber will pay €41.50, equivalent to $47.60, per share for Delivery Hero’s core global business. A significant portion of this acquisition involves purchasing shares from major investor Prosus, further consolidating Uber’s influence in the market. Additionally, as part of the transaction, investment firm SSW Partners will take over operations in 14 markets, including Austria, Norway, Spain, and Sweden, for approximately $1.6 billion, with plans to sell these assets separately.
This acquisition coincides with a wave of consolidation sweeping through the global food delivery industry, which has been reshaped by rapid growth during the Covid-19 pandemic. Companies are increasingly engaging in mergers and acquisitions to bolster their international presence amid intensifying competition. Uber’s latest move aligns with its strategic efforts in recent years to expand overseas, mirroring similar approaches adopted by its competitors.
For Delivery Hero, the acquisition follows a strategic review initiated under investor pressure, pushing for a restructuring and additional asset sales. With this deal, Uber aims to significantly enhance its footprint in the global food delivery market, leveraging Delivery Hero’s established presence and infrastructure.