Uber Technologies is set to enhance its global reach by acquiring Delivery Hero, a Germany-based food delivery giant, in a transaction valued at $14.8 billion. This move will significantly extend Uber’s influence in 50 international markets, marking a major step in its expansion strategy.
Under the terms of this acquisition, Uber will purchase Delivery Hero’s core global business at a rate of €41.50 ($47.60) per share. Additionally, the agreement entails acquiring shares from Prosus, a key investor in Delivery Hero. This strategic acquisition underscores Uber’s commitment to bolstering its position in the competitive food-delivery sector.
As part of the deal, a separate transaction involves investment firm SSW Partners, which will take over operations in 14 specific markets for about $1.6 billion. The assets in question include businesses in countries like Austria, Norway, Spain, and Sweden, which SSW intends to sell individually. This aspect of the acquisition highlights the ongoing reshaping and consolidation within the industry.
The food-delivery market has seen significant consolidation, particularly following its rapid expansion during the Covid-19 pandemic. Major companies in the sector are increasingly engaging in mergers and acquisitions to secure their international foothold amidst rising competition. Uber’s move is a reflection of this trend and aligns with its recent efforts to expand its global presence through similar strategies.
For Delivery Hero, the acquisition follows a strategic review initiated under the pressure of investors who have been advocating for restructuring and the sale of additional assets. The completion of this acquisition is anticipated to considerably strengthen Uber’s position in the global food-delivery arena, further intensifying the competition among leading players.