Uber Technologies is set to expand its reach in the global food-delivery market by acquiring Delivery Hero, a Germany-based company, for $14.8 billion. This acquisition will bolster Uber’s operations across 50 international markets, marking a significant step in its overseas expansion strategy.
The agreement stipulates that Uber will purchase Delivery Hero’s core global business at a price of €41.50, equivalent to $47.60 per share. This transaction also involves acquiring shares from major investor Prosus. Additionally, investment firm SSW Partners will take over operations in 14 markets, including Austria, Norway, Spain, and Sweden, for approximately $1.6 billion, with plans to sell these assets separately.
This move comes amid a wave of consolidation in the global food-delivery industry, which has seen rapid growth during the Covid-19 pandemic. As competition intensifies, major players are increasingly turning to mergers and acquisitions to solidify their positions. Uber’s latest acquisition aligns with this trend, as it seeks to enhance its competitive edge globally.
In recent years, Uber has actively pursued various strategies to expand its international presence, while its competitors have also been making strategic moves within the sector. Delivery Hero, under investor pressure, had initiated a strategic review, leading to restructuring and selling off certain assets. This acquisition is a strategic response to such pressures and is expected to significantly enhance Uber’s footprint in the food-delivery market worldwide.