Uber’s $14.8 Billion Partnership with Delivery Hero Set to Expand Global Reach
After extensive speculation, Uber has confirmed its plans to acquire Delivery Hero, a move that will elevate the ride-hailing and delivery company’s presence in nearly 100 markets across Europe, the Middle East, Latin America, and Asia.
Based in Germany, Delivery Hero has also entered into a separate agreement to divest its operations in 14 markets where Uber Eats is already active, selling these to New York’s investment firm SSW Partners for $1.6 billion.
This $14.8 billion acquisition, which is to be conducted entirely through stock, is not finalized. Once completed, it will position Uber’s delivery network among the largest globally, particularly outside of China. However, it is anticipated that the transaction will undergo regulatory examination. Uber, which already held a significant share in Delivery Hero, has established a minimum acceptance requirement of 50% plus one share of the total outstanding capital of Delivery Hero. Prosus, another significant investor, has also agreed to sell its 17% stake, as stated in the announcement.
Should the acquisition be completed, Uber will effectively double its market reach, enhancing its ability to compete with rivals like DoorDash and Just Eat.
“By joining forces, we will nearly double the regions in which we provide both ride and delivery services, leveraging a successful platform that we believe will deliver substantial long-term benefits for our customers and shareholders,” said Dara Khosrowshahi, CEO of Uber, in a statement.
