Uber is powering its global food delivery ambitions with its latest $14.8Bn acquisition of the german food delivery giant Delivery Hero. According to a press statement issued by the US mobility giant, Uber will offer Delivery Hero shareholders cash consideration of €41.50 per share, representing a rough equity Value of $14.8 billion, or $13.7 billion when adjusted for Uber’s prior stake purchases.
Once the offer clears all regulatory mandates, Uber and Delivery Hero will together become the world’s largest mobility and delivery platform to a total of 99 markets, with a combined gross booking value exceeding $236Bn in 2025.
For the rest of the markets, Delivery Hero has entered into a separate agreement with NY-based SSW Partners, that will result in the latter acquiring Delivery Hero’s businesses in a total of 14 markets, particularly where Uber Eats and Delivery Hero already overlap, subject to completion of the Uber Takeover Offer. This separate offer is for a total consideration of approximately $1.6 billion.
“By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world’s most dynamic economies, while creating more opportunities for merchants and couriers. Together, we’ll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders”, said Uber CEO Dara Khosrowshahi.
Food Delivery market globally, saw massive surge during COVID-19 years, which also resulted in the seeding of “quick commerce” segment. Several new regional players kept coming up, banking on a pressing need for online delivery in times when in-person outings became far and few. Over the past few years though, as things have returned to normalcy, consolidation has been happening at a rapid scale, with Uber Eats at the centre of it.
While Uber has made several acquisitions of its own to strengthen global position, it also had to sell off businesses in key markets such as India, to rivals that far outweighed Uber’s Eats service.