Uber Technologies is set to expand its global footprint in the food delivery market through a significant acquisition of Delivery Hero, a German-based company, in a transaction valued at $14.8 billion. This move will see Uber increasing its reach across 50 international markets, further solidifying its presence in the competitive food delivery sector.
According to the terms of the deal, Uber will purchase Delivery Hero’s core global operations at a price of €41.50, equivalent to $47.60, per share. The acquisition also involves buying out shares from major investor Prosus, marking a substantial consolidation in the industry.
In a related development, SSW Partners, an investment firm, is set to acquire Delivery Hero’s operations in 14 markets for about $1.6 billion. These assets, located in countries including Austria, Norway, Spain, and Sweden, are intended to be sold separately by SSW, indicating a strategic divestment approach.
This acquisition by Uber is part of a broader trend in the food delivery industry, which has seen significant consolidation following a period of rapid growth during the Covid-19 pandemic. Major players in the sector are increasingly engaging in mergers and acquisitions to enhance their international standing amid intensifying competition.
Uber’s strategy aligns with recent efforts to expand its operations overseas, while its competitors are also active in seeking strategic advantages in the market. Meanwhile, Delivery Hero had initiated a strategic review process, prompted by investor demands for restructuring and additional asset divestitures. This acquisition is anticipated to considerably bolster Uber’s position in the global food delivery arena.