Uber Technologies has announced its plan to acquire the German food delivery company Delivery Hero in a significant $14.8 billion transaction. This acquisition is set to enhance Uber’s reach across 50 international markets, marking a major expansion of its global presence.
The agreement stipulates that Uber will pay €41.50 per share, equivalent to $47.60, for Delivery Hero’s core global operations. Additionally, Uber will also purchase shares owned by the major investor Prosus. This strategic move is part of Uber’s broader effort to solidify its position in the competitive food-delivery industry, which has seen substantial growth during the Covid-19 pandemic.
Furthermore, the deal involves investment firm SSW Partners acquiring Delivery Hero’s operations in 14 markets for about $1.6 billion. These assets encompass businesses in Austria, Norway, Spain, and Sweden, and SSW intends to sell them individually following the acquisition.
This consolidation within the global food-delivery sector highlights the increasing trend of mergers and acquisitions as companies seek to bolster their international standing against a backdrop of intensifying competition. Uber has been actively pursuing overseas expansion, and this acquisition aligns with its strategy to capitalize on the growing demand for food delivery services worldwide.
The acquisition follows Delivery Hero’s strategic review, which was initiated in response to investor pressure for restructuring and potential asset sales. By acquiring Delivery Hero, Uber is expected to significantly enhance its footprint in the global food-delivery market, positioning itself as a formidable player amid the industry’s ongoing transformation.