Uber Technologies is set to expand its international food delivery reach significantly by acquiring Delivery Hero, a Germany-based company, for a staggering $14.8 billion. This strategic move will extend Uber’s operations into 50 global markets, highlighting its ambition to strengthen its position in the competitive food delivery sector.
In the terms of the acquisition, Uber will purchase Delivery Hero’s core global business at a rate of €41.50 per share, which translates to approximately $47.60 per share. Additionally, the deal encompasses the acquisition of shares owned by Prosus, a major investor in Delivery Hero.
Another element of the agreement includes investment firm SSW Partners acquiring operations in 14 specific markets for about $1.6 billion. These markets cover regions in Austria, Norway, Spain, and Sweden, and SSW intends to sell these assets separately in the future.
The acquisition is occurring as the food delivery industry experiences a wave of consolidation, a trend that accelerated during the Covid-19 pandemic when demand surged. To maintain a competitive edge, major companies in the sector are increasingly engaging in mergers and acquisitions. Uber has been actively pursuing expansion strategies abroad, mirroring similar moves by its competitors. Meanwhile, Delivery Hero had initiated a strategic review in response to investor pressures seeking restructuring and the sale of certain assets.
This latest acquisition by Uber is poised to considerably enhance its influence in the global food delivery market, marking a significant step in its ongoing efforts to broaden its international presence and leverage growth opportunities amidst intensifying competition.