Uber has paused its organic growth strategy in key European markets, such as Germany, out of concern that directly competing with Delivery Hero could complicate its ongoing takeover negotiations. This strategic shift underscores Uber's determination to acquire Delivery Hero, a move that would significantly consolidate its position in the European food delivery sector.
This pause in expansion comes as Uber reportedly made an offer of €33 per share for Delivery Hero, valuing the company at over €10 billion. While this initial bid was rebuffed, Uber is said to be weighing a higher offer, with some reports indicating a potential bid of €38 per share. Delivery Hero's shares rose by 10% following news of Uber's interest, reflecting investor optimism about a potential deal. Uber has also increased its stake in Delivery Hero to approximately 19.5%, making it the largest shareholder.
The potential acquisition is part of a broader trend of consolidation in the food delivery industry, following similar moves like DoorDash acquiring Wolt (formerly Deliveroo as reported by some sources) and Prosus acquiring Just Eat. A successful takeover would not only strengthen Uber's market share but also reduce competitive pressures in a highly contested sector. However, Uber faces potential challenges from competitors like Prosus, which has also shown interest in the European food delivery market. Uber's shares fell 2.4% following the initial news.
