Uber Technologies is set to expand its global footprint significantly by acquiring Germany-based Delivery Hero for a substantial $14.8 billion. This strategic move will bolster Uber’s reach across 50 international markets, further solidifying its position in the competitive food delivery sector.
In the acquisition agreement, Uber has committed to paying €41.50, equivalent to $47.60, per share for Delivery Hero’s main international operations. The deal also encompasses the acquisition of shares from major investor Prosus. Additionally, investment firm SSW Partners is involved in the transaction, acquiring operations in 14 specific markets like Austria, Norway, Spain, and Sweden for around $1.6 billion, with plans to sell these separately.
This acquisition marks a significant step as consolidation trends continue to shape the global food delivery industry, which saw a surge during the Covid-19 pandemic. As competition heats up, major players in the industry are increasingly turning to mergers and acquisitions to enhance their global presence and operational strength.
Uber’s move comes amidst its ongoing efforts to expand internationally, with similar strategies being seen among its competitors. Meanwhile, Delivery Hero had been conducting a strategic review due to mounting pressure from investors who were advocating for restructuring and the sale of additional assets.
The acquisition is poised to dramatically enhance Uber’s position in the worldwide food delivery market, providing it with a stronger platform to compete against other major companies in the industry.