Key Highlights
- Bloomberg reports Uber is considering a complete acquisition of European food delivery firm Delivery Hero
- The rideshare giant disclosed earlier this week it owns a 19.5% stake in Delivery Hero, with an additional 5.6% through options
- Investment bank Morgan Stanley assisted Uber in rapidly accumulating its position through derivative instruments
- Uber shares declined approximately 1.9% following the report; rival DoorDash climbed 1.9%
- Delivery Hero’s Frankfurt-listed shares have surged nearly 110% over the last six months, reaching a market cap of approximately €10.2 billion
According to a report from Bloomberg released Friday, Uber has entered preliminary discussions regarding a potential complete acquisition of Delivery Hero, the food delivery behemoth listed on the Frankfurt exchange.
The strategic initiative appears designed to strengthen Uber’s competitive position against DoorDash in markets beyond American borders.
Shares of Uber fell roughly 1.9% after the news broke. Meanwhile, DoorDash—viewed as a primary competitor in global delivery markets—saw its stock rise 1.9% on the same development.
Just days ago, Uber revealed it had swiftly accumulated a 19.5% ownership position in Delivery Hero, supplemented by options representing another 5.6%. Morgan Stanley, a prominent investment bank, facilitated the rapid stake-building through derivative strategies.
Bloomberg’s sources indicate that Uber has also initiated conversations with other major shareholders of Delivery Hero regarding its acquisition interest.
Uber’s Official Position
In an official submission to German financial authorities, Uber clarified it presently has no plans to expand its stake to 30% or beyond—a critical threshold that would normally necessitate a mandatory buyout offer under European regulatory frameworks.
However, the company acknowledged that it regularly evaluates its investment portfolio and remains open to acquiring additional shares should favorable circumstances emerge.
Uber further indicated it has no current intentions to alter Delivery Hero’s financial structure or seek influence over board member selections beyond its standard shareholder voting privileges.
Regulatory clearance from antitrust authorities may still be required before Uber can exceed specific ownership levels in European jurisdictions.
Delivery Hero’s Market Performance
Delivery Hero’s stock price has surged approximately 110% on the Frankfurt exchange during the last half-year, pushing its market capitalization to around €10.2 billion.
The enterprise runs food and grocery delivery operations throughout numerous international markets excluding the United States, positioning it as a valuable strategic target for any company seeking international expansion.
According to Bloomberg, Uber has enlisted financial advisors and is actively evaluating options to expand its ownership stake.
Discussions remain in progress, though sources emphasize that no guarantee exists that these preliminary talks will culminate in a completed transaction.
