Uber Technologies has announced its plan to acquire the German food delivery firm Delivery Hero in a deal valued at $14.8 billion. This acquisition is set to extend Uber’s reach to 50 international markets, marking a significant expansion of its global presence.
In the agreement, Uber will pay €41.50, equivalent to $47.60, per share for Delivery Hero’s primary global operations. The deal also involves the acquisition of shares owned by major investor Prosus. Alongside Uber’s acquisition, investment firm SSW Partners will take over operations in 14 markets, including Austria, Norway, Spain, and Sweden, for around $1.6 billion, with plans to sell them individually.
The move comes as the food-delivery industry worldwide continues to consolidate following substantial growth during the Covid-19 pandemic. With rising competition, major companies in the sector are increasingly engaging in mergers and acquisitions to bolster their international standing.
Uber’s acquisition strategy reflects its ongoing efforts to expand internationally, a path also pursued by its competitors. Delivery Hero had been under pressure from investors to undergo strategic restructuring and sell additional assets, leading to a strategic review that culminated in this acquisition.
This acquisition is anticipated to significantly enhance Uber’s position in the global food-delivery market, allowing the company to better compete in a rapidly evolving industry.
