Key Highlights
- Uber proposed a €10 billion acquisition of Delivery Hero, pricing shares at €33 each.
- Shares of Delivery Hero surged up to 13% during European market hours following the announcement.
- Uber currently owns 19.5% of Delivery Hero directly, plus 5.6% via derivative instruments.
- The proposal may serve to prevent competitor DoorDash from acquiring Delivery Hero operations.
- Industry consolidation accelerates as narrow profit margins and declining VC funding pressure independent operators.
Uber submitted a €10 billion acquisition proposal for Delivery Hero this week, pricing each share at €33 for the Berlin-headquartered food delivery platform. The transaction would total approximately $11.6 billion in value.
The German company acknowledged receiving the proposal over the past weekend. Shares climbed as high as 13% to reach €37.85 during morning European market activity, bringing year-to-date appreciation close to 67%.
Uber’s proposed €33 per share sat marginally below Delivery Hero’s Friday closing price of €33.59. By Tuesday’s opening, shares were changing hands near €37.60, indicating investor expectations for an improved offer.
Uber has been systematically increasing its ownership stake over recent weeks. The ride-hailing giant now controls 19.5% through direct shareholdings and an additional 5.6% via financial instruments — establishing it as the dominant shareholder.
Just last week, Uber publicly stated it had no plans to accumulate 30% or more of Delivery Hero’s voting shares. The complete takeover proposal represents a dramatic reversal from that previous stance.
Strategic Timing Behind the Offer
Delivery Hero has navigated substantial corporate shifts recently. Co-founder Niklas Ostberg revealed plans to step down as CEO before the end of March, while the company initiated a comprehensive strategic assessment in December examining potential transactions for certain business units.
This evaluation process, coupled with Prosus reducing its ownership position to satisfy EU competition requirements for another transaction, created opportunities for Uber to methodically expand its stake.
Competitive dynamics also appear influential in the timeline. Reports have connected DoorDash with potential interest in Delivery Hero operations. Following its approximately $3.9 billion purchase of UK-based Deliveroo last year, DoorDash has demonstrated appetite for international expansion and may have considered additional acquisitions.
Industry-Wide Consolidation Trend
The food delivery sector has witnessed a dramatic reduction in standalone operators over recent years. The explosive growth in delivery demand during the pandemic has receded, taking with it much of the venture capital that sustained smaller platforms.
Narrow profit margins combined with investor pivots toward artificial intelligence and other emerging sectors have driven merger activity. Achieving scale has become essential for survival.
DoorDash completed its acquisition of Finland-based Wolt. Delivery Hero absorbed Spain’s Glovo. Prosus acquired Just Eat Takeaway. The consolidation wave continues unabated.
Amazon has recently intensified its presence in the sector, launching 30-minute delivery services for groceries and essential items across multiple U.S. metropolitan areas. Competition continues intensifying across the industry.
Delivery Hero stated it maintains focus on completing its strategic review process and will communicate additional developments as appropriate.
Aspex Management, a Hong Kong-based investment firm, controls a 14.55% position in Delivery Hero following its purchase from Prosus — representing the second-largest stake after Uber.
Uber had not issued a comment regarding the proposal at publication time.
