Key Takeaways
- Uber is acquiring Delivery Hero in a 12.7 billion euro deal
- The acquisition expands Uber's global presence in the food delivery market
- Delivery Hero operates in over 60 markets and has expanded into quick commerce
- The deal is expected to be finalized in the second half of 2027
German food delivery group Delivery Hero has agreed to be taken over by US ride-hailing giant Uber in a landmark deal valued at 12.7 billion euros ($14.6 billion). Founded in 2011, Delivery Hero has grown to become one of the world's largest food delivery groups, operating in over 60 markets globally. The company has also diversified its services to include quick commerce, delivering small packages to customers.
Under the terms of the deal, Uber is offering 41.50 euros per share for Delivery Hero, valuing the company at 12.7 billion euros. However, Delivery Hero's shares were down 0.5 percent in Frankfurt after the announcement, trading at 37.9 euros. Niklas Oestberg, CEO and co-founder of Delivery Hero, expressed his enthusiasm for the partnership, citing Uber's global mobility and delivery platform as a key factor in the decision.
Uber CEO Dara Khosrowshahi also welcomed the merger, stating that it would extend affordable and reliable delivery to millions of people in dynamic economies, while creating more opportunities for merchants and couriers. As part of the deal, Uber is acquiring Delivery Hero's businesses in 50 markets worldwide, spanning Asia, Europe, Latin America, and the Middle East.
In a related development, a US investment firm, SSW Partners, is acquiring Delivery Hero's operations in 14 markets, where Uber and Delivery Hero compete, for around 1.4 billion euros. Delivery Hero's management has recommended that shareholders accept the deal, which is expected to be finalized in the second half of 2027.
Why This Matters
This acquisition marks a significant expansion of Uber's presence in the global food delivery market, and is expected to have a major impact on the industry. The deal also highlights the growing trend of consolidation in the food delivery sector, as companies seek to expand their reach and improve their competitive position.