Key Highlights
- Uber has submitted an €10 billion acquisition proposal for Delivery Hero, pricing shares at €33 each.
- Shares of Delivery Hero surged up to 13% during European market hours following the bid confirmation.
- Uber currently controls 19.5% of Delivery Hero directly, with an extra 5.6% held via derivative instruments.
- The acquisition attempt may serve as a defensive strategy against DoorDash’s potential interest in Delivery Hero operations.
- Industry consolidation accelerates as narrow profit margins and declining investment capital pressure independent operators.
On Monday, Uber presented a formal takeover proposal for Delivery Hero worth €10 billion, with an offer price set at €33 per share for the German food delivery operator. The total transaction is valued at approximately $11.6 billion.
The Berlin-headquartered company acknowledged receipt of the proposal during the weekend. Delivery Hero’s shares rallied as high as 13% to reach €37.85 during early European market activity, bringing its annual performance gain to nearly 66%.
Uber’s proposed €33 per share sits marginally below Delivery Hero’s closing price of €33.59 from Friday’s session. By Tuesday morning trading, shares were changing hands at approximately €37.60, indicating market participants anticipate a revised, more attractive proposal.
Uber has systematically increased its ownership position in Delivery Hero over recent weeks. The company currently maintains a direct shareholding of 19.5%, complemented by an additional 5.6% stake through derivative financial instruments — establishing it as the dominant shareholder.
Just last week, Uber publicly stated it had no plans to accumulate 30% or more of Delivery Hero’s voting shares. This complete acquisition offer represents a dramatic reversal from that previously declared stance.
Strategic Rationale Behind Uber’s Bid
Delivery Hero has undergone substantial organizational transformation recently. Co-founder and chief executive Niklas Ostberg revealed plans to step down by March of next year, while the company initiated a comprehensive strategic assessment in December that included evaluating potential transactions for certain business units.
This strategic evaluation, coupled with Prosus reducing its ownership stake to satisfy EU competition requirements for another transaction, created opportunities for Uber to methodically increase its holdings.
Competitive dynamics also appear central to the timing. DoorDash has been reportedly interested in acquiring portions of Delivery Hero’s operations. Following its acquisition of UK-based Deliveroo last year for approximately $3.9 billion to extend its international presence, DoorDash may have continued appetite for expansion.
Rapid Industry Consolidation Continues
The food delivery sector has witnessed a steady reduction in standalone operators over recent years. The explosive growth in delivery volumes during the pandemic has subsided, along with the venture funding that sustained smaller platforms.
Narrow operating margins combined with shifting investor priorities toward artificial intelligence and other emerging technologies have accelerated merger activity. Achieving operational scale has become essential for survival.
DoorDash completed its purchase of Finland’s Wolt. Delivery Hero acquired Spanish operator Glovo. Prosus purchased Just Eat Takeaway. Consolidation activity continues unabated.
Amazon has also intensified competition, unveiling 30-minute delivery services for groceries and household items, rolling out across numerous U.S. metropolitan areas. The competitive environment grows increasingly challenging.
Delivery Hero stated it continues executing its strategic review process and will communicate additional information when appropriate.
Aspex Management, an investment firm based in Hong Kong, controls a 14.55% position in Delivery Hero following its purchase from Prosus — making it the second-largest shareholder after Uber.
Uber has not issued a statement regarding the acquisition proposal at the time of publication.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
