In a significant move to bolster its global reach in the food delivery market, Uber Technologies has announced its acquisition of Delivery Hero, a Germany-based company, in a transaction valued at $14.8 billion. This strategic deal will extend Uber’s footprint to 50 international markets, marking a substantial expansion of its operations.
The terms of the agreement stipulate that Uber will pay €41.50, equivalent to $47.60, per share for Delivery Hero’s core global business. Additionally, the transaction involves the acquisition of shares from major investor Prosus, further consolidating Uber’s control over the acquired entity.
An integral part of this transaction involves the role of investment firm SSW Partners, which will take over operations in 14 specific markets for roughly $1.6 billion. These markets include countries like Austria, Norway, Spain, and Sweden. SSW Partners plans to manage these assets with the intention of selling them off separately in the future.
This acquisition occurs within a context of increasing consolidation in the global food delivery industry, which witnessed a surge in growth during the Covid-19 pandemic. With mounting competition, major players in the sector have been pursuing mergers and acquisitions to enhance their competitive edge and reinforce their international market positions.
Uber’s aggressive international expansion strategies have been evident over recent years, aligning with similar efforts by its competitors. Meanwhile, Delivery Hero, under pressure from investors, had embarked on a strategic review aimed at restructuring and selling additional assets. This deal is anticipated to significantly enhance Uber’s stature in the global food-delivery landscape.