TLDR
- Uber made a €10 billion (~$11.6B) takeover approach for Delivery Hero at €33 per share.
- Delivery Hero stock jumped as much as 13% in European trading after confirming the offer.
- Uber already holds a 19.5% direct stake and an additional 5.6% through financial contracts.
- The bid may be partly aimed at blocking rival DoorDash from acquiring Delivery Hero assets.
- Food delivery consolidation continues as thin margins and reduced venture capital squeeze smaller players.
Uber made a €10 billion takeover approach for Delivery Hero on Monday, offering €33 a share for the Berlin-based food delivery company. The bid values the company at roughly $11.6 billion.
Delivery Hero confirmed the offer over the weekend. Its stock jumped as much as 13% to €37.85 in early European trading, pushing its year-to-date gain to nearly two-thirds.
The offer price of €33 a share came in just below Delivery Hero’s Friday close of €33.59. By Tuesday morning, the stock was trading around €37.60, suggesting the market expects Uber may need to sweeten the deal.
Uber has been building its position in Delivery Hero for weeks. It now holds a 19.5% direct stake, plus another 5.6% through financial contracts — making it the company’s largest shareholder.
As recently as last week, Uber said it had no intention of acquiring 30% or more of Delivery Hero’s voting rights. The full takeover bid marks a sharp turn from that stated position.
Why Uber Is Moving Now
Delivery Hero has been through a period of significant change. Co-founder and CEO Niklas Ostberg announced his departure by March next year, and the company launched a strategic review in December that included exploring deals for select operations.
That review, combined with Prosus selling down its stake to clear EU regulatory hurdles for a separate deal, opened the door for Uber to steadily build its position.
The timing also appears connected to competitive pressure. DoorDash has been linked to interest in Delivery Hero assets. DoorDash acquired UK-based Deliveroo last year for roughly $3.9 billion, expanding its global reach, and may have had eyes on more.
A Market Consolidating Fast
The food delivery industry has been shrinking its roster of independent players for years. The pandemic-era boom in delivery orders has faded, and with it, the venture capital that kept smaller platforms afloat.
Thin margins and a shift in investor focus toward AI and other sectors have pushed companies toward mergers. Scale has become survival.
DoorDash bought Finland’s Wolt. Delivery Hero took Glovo in Spain. Prosus acquired Just Eat Takeaway. The deals keep coming.
Amazon is now pushing into the space too, announcing 30-minute deliveries on groceries and essentials, expanding to dozens of U.S. cities. The competitive landscape is getting tighter.
Delivery Hero said it remains focused on its strategic review and will provide further updates as needed.
Aspex Management, a Hong Kong-based investor, holds a 14.55% stake in Delivery Hero after buying from Prosus — the second-largest shareholder behind Uber.
Uber did not respond to a request for comment as of the time of reporting.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
