Uber Technologies has reached an agreement to acquire Delivery Hero, a prominent food delivery company based in Germany, in a deal worth $14.8 billion. This acquisition is set to significantly enhance Uber’s operations across 50 international markets, marking a major step in the company’s global expansion strategy.
The terms of the deal involve Uber purchasing Delivery Hero’s core global business at a rate of €41.50, or $47.60, per share. As part of the acquisition, Uber will also acquire shares from major investor Prosus. This strategic move comes amid a wave of consolidation within the global food-delivery industry, which has seen rapid growth during the Covid-19 pandemic, prompting major players to pursue mergers and acquisitions to gain competitive advantages in the international arena.
In parallel to Uber’s acquisition, investment firm SSW Partners will take control of Delivery Hero’s operations in 14 markets for approximately $1.6 billion. These assets include businesses located in Austria, Norway, Spain, and Sweden. SSW Partners plans to sell these assets individually, further contributing to the reshaping of the market landscape.
Uber’s latest move aligns with its broader strategy to expand its presence overseas, a tactic it has pursued aggressively in recent years. Meanwhile, its competitors have also been active in the sector, seeking to solidify their positions amidst intensifying competition. Delivery Hero, for its part, initiated a strategic review following investor pressure to restructure and sell off additional assets, leading up to this acquisition.
The acquisition is poised to bolster Uber’s position in the global food delivery market, providing it with a stronger foothold and enhanced capabilities to compete on a larger scale. As the industry continues to evolve, this deal represents a significant milestone in Uber’s efforts to capitalize on the growing demand for food delivery services worldwide.