Uber and Delivery Hero Announce Landmark Acquisition
Uber has reached an agreement to acquire German takeaway company Delivery Hero in a $14.8bn (£11bn, €12.9bn) deal that will create a global food delivery giant. The US tech firm offered €41.50 per share to Delivery Hero’s shareholders, valuing the business at $14.8bn. After accounting for previous purchases of a quarter of Delivery Hero’s shares, Uber will pay $13.7bn.
Global Reach and Market Expansion
The deal combines Uber Eats with Delivery Hero’s brands across 99 countries, including Asia’s foodpanda, Latin America’s PedidosYa, and talabat in the Middle East. The combined company booked $236bn in orders in 2025. However, Uber will not acquire Delivery Hero’s operations in 14 countries where it already has a strong presence, including Glovo (Portugal and Spain), foodora (Norway and Sweden), and Yemeksepeti (Turkey). These will be bought for $1.6bn by SSW Partners, a New York-based private equity firm. Splitting the deal helps prevent Uber from dominating those markets, a key consideration for competition regulators. Delivery Hero does not operate in the UK, where Uber Eats is a major player.
Industry Consolidation Amidst Post-Pandemic Challenges
The food delivery industry boomed during coronavirus lockdowns but has since faced pressure to achieve scale to cover operating costs, leading to a wave of takeovers. DoorDash acquired Deliveroo for £2.9bn last year, and Prosus bought JustEat Takeaway for €4bn. Delivery Hero’s board and executives unanimously supported the takeover and will recommend it to shareholders. Prosus committed to selling its 17% stake in Delivery Hero to Uber.
Quotes from Leadership
Kristin Skogen Lund, chair of Delivery Hero’s supervisory board, said: “The food delivery business is highly competitive and scale-dependent. It is challenging to build from a European base, yet we have achieved an enormous amount over 15 years. Joining forces with a strong partner now is the right move for Delivery Hero to best secure its future competitiveness and ability to deliver value for all our stakeholders.”
Uber CEO Dara Khosrowshahi stated: “By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world’s most dynamic economies, while creating more opportunities for merchants and couriers. Together, we’ll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders.”
Workforce and Investment Commitments
Uber will maintain Delivery Hero’s headquarters in Berlin and make no changes to its workforce until at least 2029. It also pledged to invest €2bn in Germany over the next five years. The deal is expected to close in the second half of 2027. After completion, Uber will offer taxi services and food delivery in 58 markets, up from 34. Uber notes that customers using both services spend three times more on its app.
Delivery Hero’s Background
Delivery Hero founder Niklas Östberg started his first food delivery company in 2008 in Sweden, founded Delivery Hero in 2011 in Germany, and listed it on the Frankfurt Stock Exchange in 2017. Under pressure from activist investors, Östberg agreed to leave the company in May. He commented: “I’m grateful to our people for building this company over 15 years and we look forward to this great next chapter together.”
