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Uber to gobble up Delivery Hero in latest food delivery deal / Photo: © AFP
Uber to gobble up Delivery Hero in latest food delivery deal
US ride-hailing giant Uber has struck a 12.7-billion-euro ($14.6-billion) deal to take over German food delivery behemoth Delivery Hero, the latest consolidation in the industry, the companies said Thursday.
The German firm operates in over 60 markets worldwide and has expanded beyond its traditional food business to "quick commerce", delivering household items and groceries to customers.
The deal, widely expected after Uber built up a stake in the Berlin-headquartered group, brings together two companies operating in 99 markets which delivered goods and services worth $236 billion in 2025.
"Uber's global mobility and delivery platform and our shared commitment to innovation make this the right partnership to build on Delivery Hero's strengths in local food delivery and quick commerce," said Niklas Oestberg, CEO and co-founder of Delivery Hero.
It is the latest consolidation in the fast-growing global food delivery industry, after US group DoorDash took over Britain's Deliveroo and Prosus acquired Dutch outfit Just Eat Takeaway.
But the huge deal is likely to attract scrutiny of regulators worldwide due to its potential to reduce competition.
In a bid to placate concerns, Uber will not take over Delivery Hero's operations in 14 mainly European markets where they already compete, with these businesses instead being sold to a US investment firm.
"There is always a risk with acquisitions that the resulting increase in a company's market power will be used to push through higher prices," Kai Hudetz, managing director of the IFH Koeln retail research institute, told AFP.
But he also stressed it was a "major challenge for anti-trust authorities to properly assess acquisitions in the digital sphere".
- 'More opportunities' -
Uber is offering 41.50 euros per share for Delivery Hero -- above their price on Thursday of nearly 39 euros -- valuing the transaction at 12.7 billion euros.
Shares in Delivery Hero, which was founded in 2011, were volatile in Frankfurt following the announcement, initially dropping over two percent before bouncing back to trade one percent higher.
Uber is acquiring Delivery Hero's businesses in 50 markets worldwide.
It operates under different brand names around the world: in much of Asia, it is called foodpanda; in parts of Europe and Africa, Glovo; in Latin America, PedidosYa and in the Middle East, talabat.
A US investment firm, SSW Partners, is paying 1.4 billion euros to acquire the German group's operations in the 14 markets where the firms compete.
Delivery Hero said its management recommended that shareholders accept the offer, and it is expected to be finalised in the second half of 2027.
For the deal to pass, it needs to be accepted by parties holding 50 percent of Delivery Hero stock, plus one share.
The deal had been widely expected after Uber, which also operates food delivery services in many countries on the Uber Eats platform, built up a stake of over 30 percent in Delivery Hero.
Uber CEO Dara Khosrowshahi said a merger would "extend affordable, reliable delivery to many millions more people in some of the world's most dynamic economies, while creating more opportunities for merchants and couriers".
Y.Gomez--SFF
