Uber Technologies is set to expand its global footprint significantly by acquiring the German food delivery giant, Delivery Hero, in a transaction valued at $14.8 billion. This strategic move is poised to enhance Uber’s presence across 50 international markets, marking a notable advancement in the company’s global food delivery operations.
The agreement entails Uber purchasing Delivery Hero’s core global business at a price of €41.50, or $47.60 per share. Additionally, the deal includes acquiring shares held by prominent investor, Prosus. In a related development, investment firm SSW Partners will take over operations in 14 markets for approximately $1.6 billion. These assets, spanning countries like Austria, Norway, Spain, and Sweden, are intended for separate sales by SSW.
This acquisition occurs amidst a period of consolidation within the global food delivery sector, which saw rapid expansion during the Covid-19 pandemic. As competition intensifies, major players in the industry are increasingly turning to mergers and acquisitions to bolster their international standing. Uber’s move aligns with its recent strategic efforts to extend its reach overseas, while other companies in the sector pursue similar expansion tactics.
Delivery Hero, under pressure from investors to restructure and sell additional assets, had initiated a strategic review prior to the acquisition. This move by Uber is anticipated to fortify its position in the competitive global food delivery market, providing a substantial boost to its operational capabilities worldwide.