Uber to Buy Delivery Hero in Major Global Food Delivery Deal

Uber Technologies has agreed to buy Germany's Delivery Hero SE in a deal valuing the global food delivery company at about €12.9 billion ($14.8 billion). It is one of the biggest deals in the food delivery sector as the industry keeps consolidating.

Under the agreement announced on Thursday, Uber will pay €41.50 per share in cash for Delivery Hero, confirming reports that emerged earlier this week.

The acquisition will give Uber control of most of Delivery Hero's global operations across 50 markets in Europe, the Middle East, Asia, Latin America and Africa. Delivery Hero owns several major food delivery platforms, including Talabat, Foodpanda and HungerStation.

As part of the transaction, Uber will also acquire the stake held by one of Delivery Hero's largest shareholders, Amsterdam-listed Prosus NV.

Separate divestment

Separately, investment firm SSW Partners will acquire Delivery Hero operations in 14 markets for about $1.6 billion. These businesses, which include operations in Austria, Norway, Spain and Sweden, will later be sold one by one to other buyers.

These 14 markets are being carved out because they are where Uber Eats and Delivery Hero overlap. This makes them the most likely to face antitrust review. Selling them to SSW Partners is meant to make the regulatory approval process smoother before SSW finds long-term buyers for those businesses.

However, none of Delivery Hero's Gulf businesses are included in this divestment to SSW Partners. This means talabat (UAE, Bahrain, Kuwait, Oman, Qatar, Jordan, Egypt and Iraq) and HungerStation (Saudi Arabia) will move directly to Uber as part of the acquisition, along with Delivery Hero's Asian operations under foodpanda and its Latin American business PedidosYa (excluding Chile and Ecuador).

The acquisition announcement came a day after Delivery Hero confirmed on Wednesday that it was in advanced talks with Uber about a possible takeover offer.

Strategic review

The deal comes after months of uncertainty at Delivery Hero, which has been reviewing its business after pressure from shareholders, including hedge fund Aspex Management. The investor successfully pushed out founder and former chief executive Niklas Östberg and had urged the company to pursue asset sales and other steps to improve shareholder value.

Uber had already been increasing its investment in the company. In May, Delivery Hero disclosed that Uber had raised its holding to 19.5% of the company's issued share capital, alongside options representing another 5.6%.

At the time, Delivery Hero described Uber's increased investment as "a further endorsement of its platform and Everyday App strategy," while saying it remained focused on improving operations and completing its strategic review.

The acquisition of Delivery Hero will significantly expand Uber's international delivery footprint, especially in emerging markets where Delivery Hero has built strong positions through brands such as talabat, foodpanda and HungerStation.

The transaction is still subject to normal closing conditions and regulatory approvals.

Deal reshapes delivery

The acquisition brings together two of the world's biggest technology platforms in ride-hailing and food delivery, giving Uber a much larger presence across Europe, the Middle East, Asia, Latin America and Africa.

Delivery Hero has spent more than 10 years growing through acquisitions and organic expansion, building a portfolio of local delivery brands instead of using one global name. Its best-known businesses include talabat in the Middle East and North Africa, foodpanda across Asia, and HungerStation in Saudi Arabia.

For Uber, the deal increases its exposure to markets where it previously had limited delivery presence, while reducing overlap in highly competitive areas. The carve-out of 14 markets to SSW Partners is expected to help address competition concerns in some regions and make regulatory approvals easier.

The deal also marks the latest step in Uber's plan to grow beyond ride-hailing into a broader platform offering food delivery, grocery delivery and other local commerce services, with Uber Eats becoming one of its largest business segments in recent years.