Uber in advanced negotiations to acquire Delivery Hero, German company confirms

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Uber Technologies is reportedly in advanced negotiations to acquire German food delivery giant Delivery Hero, a move that could significantly expand the US company’s global footprint. Delivery Hero confirmed on Tuesday that it is engaged in discussions with the ride-hailing and food-delivery behemoth regarding a potential takeover offer.

The confirmation followed a Bloomberg News report indicating that Uber was in advanced talks to purchase Delivery Hero, with an agreement potentially reached as early as this week.

Uber Technologies is reportedly in advanced negotiations to acquire German food delivery giant Delivery Hero (AFP via Getty Images)

The proposed deal is expected to value Delivery Hero well above its recent trading price of approximately 36 euros per share. The Berlin-based firm has seen its value climb by about 62% this year, giving it a market capitalization of roughly 11.2 billion euros ($12.8 billion).

Delivery Hero declined to comment on the specifics of the offer price but stated that any potential bid would be extended to all shareholders. Uber also declined to comment on the ongoing discussions. Following the news, Uber’s shares saw a nearly 2% dip, while Delivery Hero’s stock closed 5.76% higher at 39.10 euros.

These discussions come after months of speculation surrounding Delivery Hero’s future. Media reports suggest Uber previously approached the company in May with an offer of 38 euros per share, which investors reportedly deemed too low. An acquisition would broaden Uber Eats’ food-delivery network across Europe, the Middle East, Asia, and Latin America.

However, such a deal would likely draw scrutiny from antitrust regulators due to the significant overlap in the companies’ operational areas. The food delivery industry has seen increasing consolidation amid slowing growth and intense competition, as companies strive for improved profit margins.

Uber has been actively diversifying beyond its core ride-hailing business, bolstering its food delivery services and venturing into grocery, travel, and local commerce, including recent moves into hotel bookings.

Earlier this year, Uber announced an expansion of its food delivery operations into seven new European markets, anticipating an additional $1 billion in gross bookings over the next three years. Furthermore, Reuters reported in late May that Uber had increased its stake in Delivery Hero to nearly 37% from 25% by acquiring shares from fellow shareholder Aspex Management.

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