Uber to buy Talabat owner Delivery Hero in $14.8 billion deal

Dubai: Uber Technologies has agreed to acquire Germany's Delivery Hero SE in a deal valuing the global food delivery company at about €12.9 billion ($14.8 billion), marking one of the biggest transactions in the food delivery sector as the industry continues to consolidate.

Under the agreement announced on Thursday, Uber will pay €41.50 per share in cash for Delivery Hero, confirming reports that emerged earlier this week.

The acquisition will give Uber control of the majority of Delivery Hero's global operations, spanning 50 markets across Europe, the Middle East, Asia, Latin America and Africa. Delivery Hero owns several major food delivery platforms, including talabat, foodpanda and HungerStation.

As part of the transaction, Uber will also acquire the stake held by one of Delivery Hero's largest shareholders, Amsterdam-listed Prosus NV.

Separately, investment firm SSW Partners will acquire Delivery Hero operations in 14 markets for about $1.6 billion. Those businesses, which include operations in Austria, Norway, Spain and Sweden, will later be sold individually to other buyers.

These 14 markets are being carved out because they are where Uber Eats and Delivery Hero have overlapping operations, making them the most likely to attract antitrust scrutiny. Selling them to SSW Partners is intended to smooth the path for regulatory approvals before SSW ultimately finds long-term buyers for those businesses.

However, none of Delivery Hero's Gulf businesses are included in this divestment to SSW Partners, meaning talabat (UAE, Bahrain, Kuwait, Oman, Qatar, Jordan, Egypt and Iraq) and HungerStation (Saudi Arabia) will move directly to Uber as part of the acquisition, alongside Delivery Hero's Asian operations under foodpanda and its Latin American business PedidosYa (excluding Chile and Ecuador)

The acquisition announcement comes a day after Delivery Hero on Wednesday confirmed it was in advanced negotiations with Uber regarding a potential takeover offer.

The deal follows months of strategic uncertainty at Delivery Hero, which has been reviewing its business after pressure from shareholders, including hedge fund Aspex Management. The investor successfully pushed out founder and former chief executive Niklas Östberg and had urged the company to pursue asset sales and other measures to improve shareholder value.

Uber had already been increasing its investment in the company. In May, Delivery Hero disclosed that Uber had raised its holding to 19.5% of the company's issued share capital, alongside options representing another 5.6%.

At the time, Delivery Hero described Uber's increased investment as "a further endorsement of its platform and Everyday App strategy," while saying it remained focused on improving operations and completing its strategic review.

The takeover reflects the continuing consolidation of the global food delivery industry after rapid expansion during the Covid-19 pandemic.

Many delivery companies have struggled with slower growth, rising competition and pressure to improve profitability as demand normalised after pandemic lockdowns.

Uber has increasingly relied on acquisitions to strengthen its international delivery business, while competitors have pursued similar strategies.

Last year, DoorDash agreed to acquire UK-based Deliveroo, while Prosus struck a deal to buy Just Eat Takeaway.com, reducing the number of major independent food delivery companies globally.

The acquisition of Delivery Hero significantly expands Uber's international delivery footprint, particularly across emerging markets where Delivery Hero has built strong positions through brands such as talabat, foodpanda and HungerStation.

The transaction remains subject to customary closing conditions and regulatory approvals.

The acquisition brings together two of the world's largest technology platforms in ride-hailing and food delivery, giving Uber a substantially larger presence across Europe, the Middle East, Asia, Latin America and Africa.

Delivery Hero has spent more than a decade expanding through acquisitions and organic growth, building a portfolio of local delivery brands rather than operating under a single global name. Its best-known businesses include talabat in the Middle East and North Africa, foodpanda across Asia, and HungerStation in Saudi Arabia.

For Uber, the transaction deepens its exposure to markets where it previously had a limited delivery presence while reducing overlap in highly competitive regions. The carve-out of 14 markets to SSW Partners is expected to address competition concerns in some jurisdictions and simplify regulatory approvals.

The deal also marks the latest step in Uber's strategy of expanding beyond ride-hailing into a broader platform offering food delivery, grocery delivery and other local commerce services, with Uber Eats becoming one of its largest business segments in recent years.