Uber Technologies is set to significantly bolster its international food delivery operations with its acquisition of Germany’s Delivery Hero. The deal, valued at $14.8 billion, will extend Uber’s reach across 50 global markets. This strategic move sees Uber purchasing Delivery Hero’s core operations for €41.50 ($47.60) per share, a transaction also involving shares from major stakeholder Prosus.
In conjunction with this acquisition, investment firm SSW Partners will take over Delivery Hero’s business in 14 specific markets, including Austria, Norway, Spain, and Sweden. These assets, valued at approximately $1.6 billion, are intended to be sold separately by SSW, according to their plans.
This consolidation within the food delivery sector follows a period of robust growth spurred by the Covid-19 pandemic. As competition intensifies, major companies are increasingly seeking mergers and acquisitions to solidify their international standing. Uber’s recent global expansion efforts reflect this trend, paralleling similar strategies by its industry rivals.
Delivery Hero initiated a strategic review in response to investor pressures, which called for restructuring and the sale of certain assets, leading to this acquisition by Uber. This deal is anticipated to substantially enhance Uber’s position in the competitive global food delivery market, marking a significant step in its expansion strategy.