Uber Technologies is set to bolster its international food delivery operations with the acquisition of Germany’s Delivery Hero for $14.8 billion. This strategic move will see Uber broaden its reach across 50 global markets, marking a significant expansion in its service footprint.
The agreement stipulates that Uber will purchase Delivery Hero’s core global business at a price of €41.50, or $47.60, per share. This transaction also involves the acquisition of shares held by major investor Prosus. In parallel, investment firm SSW Partners will acquire Delivery Hero’s operations in 14 different markets for around $1.6 billion, including key areas such as Austria, Norway, Spain, and Sweden, with plans to divest these assets separately.
This acquisition is part of a larger trend within the food-delivery sector, which has been consolidating rapidly following a surge in demand during the Covid-19 pandemic. As competition intensifies, major players in the industry are increasingly turning to mergers and acquisitions to solidify their global standing.
For Uber, this deal continues a series of overseas expansion strategies that it has pursued in recent years. Similarly, Delivery Hero had been under pressure from investors for restructuring and additional asset sales, prompting a strategic review of its operations prior to this acquisition.
The integration of Delivery Hero’s markets is expected to considerably enhance Uber’s position in the global food-delivery landscape, allowing it to compete more effectively on the international stage.