Uber Technologies is set to expand its global reach in the food delivery sector with its agreement to purchase Delivery Hero, a German-based company, in a deal valued at $14.8 billion. This acquisition will bolster Uber’s operations across 50 international markets, marking a significant step in the company’s strategic growth outside of its core transportation services.
The terms of the deal include Uber paying €41.50 ($47.60) per share for Delivery Hero’s primary global operations. Additionally, Uber will acquire shares from Prosus, a major investor in Delivery Hero. In a related move, investment firm SSW Partners will purchase operations in 14 markets for approximately $1.6 billion. These assets, located in Austria, Norway, Spain, and Sweden, are intended for separate resale by SSW.
This acquisition occurs amidst a wave of consolidation in the food delivery industry, which saw rapid expansion during the Covid-19 pandemic. As competition intensifies, major companies are increasingly engaging in mergers and acquisitions to solidify their international standings. Uber’s move aligns with its recent efforts to expand its presence overseas, a strategy also adopted by its competitors in the sector.
Delivery Hero, which had been under pressure from investors to restructure and explore asset sales, initiated a strategic review leading up to this agreement. The acquisition by Uber is poised to significantly enhance its standing in the global food delivery market, leveraging Delivery Hero’s existing infrastructure and market presence.
For Uber, this transaction signifies a formidable leap in its global ambitions, particularly in the food delivery arena, where it seeks to compete more robustly against other industry giants. With this deal, Uber not only consolidates its market position but also sets the stage for potential growth through the integration and expansion of Delivery Hero’s operations.