Uber Technologies is reportedly exploring a full acquisition of Delivery Hero, according to a Bloomberg report on Friday. This move marks a significant escalation in the U.S. company's global food delivery ambitions. Uber shares declined 1.6% in New York following the news, while Delivery Hero declined to comment on the report.
Stake Building and Regulatory Triggers
Earlier this week, Uber disclosed that it had raised its stake in the Frankfurt-listed Delivery Hero to 19.5%, up from roughly 7%, making it the largest shareholder. The company also holds options for an additional 5.6% of shares. A further increase to 30% would trigger a mandatory takeover offer for the remaining shares, according to a regulatory filing.
Bloomberg reported that Uber has been working with advisors and has spoken with other Delivery Hero investors. The company used Morgan Stanley to build its position quickly through derivatives, rather than direct stock purchases. However, deliberations are ongoing and may not result in a deal.
Market Context and Competitive Landscape
The potential bid comes amid a consolidating food delivery market. DoorDash received EU approval last year to acquire Deliveroo, while Prosus secured conditional clearance for its €4.1 billion purchase of Just Eat Takeaway after agreeing to reduce its Delivery Hero stake. A full takeover by Uber would further intensify rivalry among the industry's major players.
Analysts view Uber's stake build as more than a passive investment. JPMorgan analysts called it a "clear endorsement" of Delivery Hero's asset base, while Berenberg's Wolfgang Specht noted that the investment case may have "materially changed" and that takeover scenarios now deserve consideration.
Delivery Hero's Strategic Transition
Delivery Hero is already in the midst of a leadership change. The company announced on May 12 that co-founder and CEO Niklas Östberg will step down by March 31, 2027, though he will remain involved during a strategic review and related M&A activities. Östberg described the timing as the "right moment" to begin transitioning the company to its next chapter.
The Berlin-based company operates in approximately 65 countries across Asia, Europe, Latin America, the Middle East, and Africa. Its "Everyday App" strategy aims to expand beyond restaurant meal delivery into a broader range of daily-use services.
Regulatory Hurdles and Shareholder Dynamics
Regulatory challenges remain a key obstacle. Uber previously abandoned a $950 million bid for Delivery Hero's Foodpanda Taiwan business after Taiwan blocked the deal on competition grounds. In Europe, crossing ownership thresholds could require antitrust approval, and a broader takeover would face heightened scrutiny given the EU's focus on food delivery competition.
Delivery Hero's other major shareholders include Prosus (16.8%) and activist investor Aspex Management, which recently raised its stake to about 15% and has pushed for asset sales and leadership changes. Aspex founder Hermes Li cited "belief in the value upside" as the reason for increasing the stake.
Market Reaction and Outlook
Delivery Hero shares have risen nearly 50% in Frankfurt trading this year, giving the company a market value of approximately €10.2 billion. Uber's increased stake gives it a stronger voice ahead of the June 23 annual meeting. The key question for investors is whether Uber's position will remain purely financial or become the opening move in a full takeover attempt, potentially reshaping the global food delivery landscape.
