In a significant move to bolster its global presence, Uber Technologies is set to acquire the German food delivery giant Delivery Hero in a deal worth $14.8 billion. This acquisition is poised to extend Uber’s reach into 50 international markets, marking a substantial expansion of its operations.
According to the terms of the deal, Uber will purchase Delivery Hero’s core global business at a price of €41.50 ($47.60) per share. Additionally, the agreement includes acquiring shares from major investor Prosus, consolidating Uber’s stake in the food delivery sector.
An integral part of this transaction involves investment firm SSW Partners, which will acquire Delivery Hero’s operations in 14 specific markets for around $1.6 billion. These assets, located in countries such as Austria, Norway, Spain, and Sweden, are intended to be sold separately by SSW.
This acquisition occurs amidst a wave of consolidation within the global food-delivery industry, driven by rapid growth during the Covid-19 pandemic. As competition intensifies, major players are increasingly resorting to mergers and acquisitions to solidify their international standing. Uber itself has been actively pursuing overseas expansion strategies, while Delivery Hero had initiated a strategic review due to investor pressure for restructuring and asset sales.
By acquiring Delivery Hero, Uber is expected to significantly enhance its foothold in the global food-delivery market, further positioning itself as a formidable player in the industry.