Uber agrees to acquire Delivery Hero for $14.8B

Uber has agreed to acquire Delivery Hero in an all-stock deal valued at $14.8 billion, a purchase that would take the ride-hailing and delivery giant into nearly 100 markets across Europe, the Middle East, Latin America, and Asia. The agreement follows weeks of speculation about a deal between the two companies.

In a separate agreement, German-based Delivery Hero will sell its business in 14 markets — where Uber Eats already operates — to New York-based investment firm SSW Partners for $1.6 billion. The acquisition isn’t final yet: Uber, already Delivery Hero’s largest shareholder, has set a minimum acceptance threshold of 50% plus one share of Delivery Hero’s outstanding share capital, and the deal will likely face regulatory scrutiny. Prosus, another major Delivery Hero shareholder, has agreed to sell its 17% stake as well, according to the announcement.

If completed, the acquisition would make Uber’s delivery platform one of the largest in the world — at least the largest outside of China — and essentially double Uber’s footprint, better positioning it to compete with DoorDash and Just Eat. “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,” Uber CEO Dara Khosrowshahi said in a statement.

Why it matters

The deal would reshape the food-delivery landscape across Europe, the Middle East, Latin America, and Asia, giving Uber a stronger position against DoorDash and Just Eat — assuming it clears the regulatory scrutiny the companies expect.