Uber to buy Germany-based Delivery Hero for $14.8B
Uber to expand its delivery footprint through a $14.8B acquisition of Delivery Hero.
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Uber plans to acquire Delivery Hero for $14.8 billion, doubling its global delivery footprint to 99 markets. This deal is essential for Uber Eats to enhance operations across various regions, including parts of Asia and the Middle East, where it will benefit from existing brand presence like Talabat.
Why It Matters
This acquisition may improve Uber's competitive positioning in the food delivery market and expand its offering to multi-unit operators in new territories, potentially affecting local franchise dynamics and unit economics.
Uber is set to acquire Germany-based delivery giant Delivery Hero for $14.8 billion, a move aimed at significantly expanding its global delivery operations and reinforcing its presence in competitive markets. This acquisition will double Uber Eats’ global footprint to a total of 99 markets, positioning it as one of the largest food delivery companies worldwide. In a complementary transaction, Delivery Hero is divesting its operations in 14 overlapping markets to SSW Partners for $1.6 billion, leaving Uber with operations in 50 diverse markets including key regions in Asia, Europe, Central and South America, Africa, and the Middle East.
The combined entities generated approximately $236 billion in gross bookings last year, with Uber contributing $193 billion and Delivery Hero $43 billion. This merger not only aims to enhance accessibility to delivery services but also positions Uber favorably in markets like Korea and the Middle East, where Talabat, a leading brand under Delivery Hero, is rapidly growing. Uber CEO Dara Khosrowshahi emphasized that this deal will allow the company to reach “many millions more people in many of the world’s most dynamic economies” and will increase the number of markets where they offer both ride and delivery services from 34 to 58.
