Key Takeaways
- Uber has submitted an €10 billion (approximately $11.6 billion) acquisition proposal for Delivery Hero at €33 per share.
- Shares of Delivery Hero surged up to 13% during European market hours following confirmation of the proposal.
- Uber currently owns 19.5% of Delivery Hero directly, with an additional 5.6% held through derivative instruments.
- Industry observers suggest the offer could be a strategic move to prevent DoorDash from acquiring key Delivery Hero operations.
- The food delivery sector faces ongoing consolidation pressures driven by narrow profit margins and declining investor appetite.
Uber has submitted a significant acquisition proposal for Delivery Hero, the Berlin-headquartered food delivery platform, valued at approximately €10 billion. The offer stands at €33 per share, translating to roughly $11.6 billion in total value.
The German company publicly acknowledged the proposal over the weekend. Following the announcement, Delivery Hero’s shares climbed as much as 13% to reach €37.85 during morning trading sessions across European exchanges, extending the stock’s year-to-date performance to nearly 67%.
Uber’s proposed acquisition price of €33 per share fell slightly short of Delivery Hero’s closing price from Friday, which stood at €33.59. By Tuesday’s trading session, shares were hovering around €37.60, indicating market participants anticipate Uber may need to increase its offer to secure the deal.
Uber has methodically accumulated its stake in Delivery Hero over recent weeks. The ride-hailing giant currently controls 19.5% through direct ownership and holds another 5.6% via financial instruments, establishing itself as the leading shareholder in the company.
Interestingly, just days before the takeover announcement, Uber publicly stated it had no plans to acquire 30% or more of Delivery Hero’s voting shares. The complete buyout proposal represents a dramatic reversal of that earlier stance.
Strategic Timing Behind the Offer
Delivery Hero has been navigating a transformative phase. The company’s co-founder and chief executive, Niklas Ostberg, revealed his intention to step down by March of next year. Additionally, management initiated a comprehensive strategic assessment in December, exploring potential transactions for certain business segments.
This internal review, coupled with Prosus divesting portions of its holdings to satisfy European Union regulatory requirements for an unrelated transaction, created an opportunity for Uber to systematically increase its ownership position.
Competitive dynamics also appear to influence the timing. Reports have connected DoorDash with potential interest in portions of Delivery Hero’s portfolio. Having acquired Deliveroo, the UK-based delivery service, for approximately $3.9 billion last year to strengthen its international presence, DoorDash may have been eyeing additional expansion opportunities.
Industry-Wide Consolidation Accelerates
The food delivery sector has witnessed a steady reduction in independent operators over recent years. The extraordinary surge in delivery orders during the pandemic has subsided, along with the venture capital funding that sustained smaller competitors.
Narrow profit margins combined with investors pivoting toward artificial intelligence and emerging technologies have accelerated merger activity. Achieving operational scale has become essential for survival.
DoorDash completed its acquisition of Wolt, the Finnish platform. Delivery Hero absorbed Spain’s Glovo. Prosus purchased Just Eat Takeaway. Consolidation transactions continue at a steady pace.
Amazon has also intensified its presence in this space, rolling out 30-minute delivery services for groceries and household items across numerous American metropolitan areas. Competitive intensity continues to mount.
Delivery Hero indicated it remains committed to completing its strategic review process and will communicate updates when appropriate.
Aspex Management, an investment firm based in Hong Kong, currently holds a 14.55% position in Delivery Hero after acquiring shares from Prosus, making it the second-largest shareholder following Uber.
Uber had not provided a response to media inquiries at the time this report was prepared.
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