In a significant move to bolster its international operations, Uber Technologies is set to acquire Germany’s Delivery Hero for $14.8 billion. This strategic acquisition will enhance Uber’s presence across 50 global markets, marking a major expansion in its food delivery services.
The agreement stipulates that Uber will pay €41.50, equivalent to $47.60 per share, for Delivery Hero’s core global operations. Additionally, the deal includes the acquisition of shares from major investor Prosus, further solidifying Uber’s stake in the food delivery giant.
Concurrently, investment firm SSW Partners will take over operations in 14 different markets for around $1.6 billion. This acquisition involves businesses in countries such as Austria, Norway, Spain, and Sweden, with SSW planning to eventually sell these assets in separate transactions.
This acquisition occurs amidst ongoing consolidation in the food delivery industry, which has seen significant growth during the Covid-19 pandemic. With increasing competition, companies are increasingly resorting to mergers and acquisitions to strengthen their market positions globally.
Uber has been actively seeking to expand its international footprint, while competitors have also been making strategic moves in the sector. Meanwhile, Delivery Hero had been under pressure from investors to conduct a strategic review, leading to restructuring efforts and potential asset sales. This acquisition is anticipated to considerably enhance Uber’s role in the global food delivery market.