Delivery Hero shares traded at €37.91 in Frankfurt on Tuesday, comfortably above Uber Technologies' €33-a-share indicative bid, as market participants bet on a higher offer to seal a deal. The stock rose 0.8% by mid-afternoon, after touching €38.13 earlier in the session, reflecting expectations that Uber may need to sweeten its proposal to win over shareholders.
Uber confirmed over the weekend that it had submitted an indicative proposal of €33 per share, valuing Delivery Hero at over €10 billion. However, the gap between the bid price and the current market price suggests investors are factoring in a possible increase, either from Uber or another suitor. Delivery Hero shares surged up to 12.7% on Monday, reaching their highest since late 2024, following reports that Uber's board discussed raising its offer after a key shareholder rejected €38 per share.
Uber recently doubled its stake in Delivery Hero to 19.5%, making it the largest shareholder. The company also holds options on an additional 5.6% of the issued capital. In a regulatory filing, Uber stated it had no plans to increase its stake to 30%, which would trigger a mandatory takeover offer under German law. JPMorgan analysts described the stake increase as a "clear endorsement" of Delivery Hero's assets.
The bidding war is not limited to Uber. DoorDash, fresh from completing its Deliveroo acquisition, has also expressed interest in Delivery Hero's Middle East operations, which include the Talabat and HungerStation brands. DoorDash has approached Delivery Hero investors, according to reports, as it seeks to expand its international footprint and achieve scale economies in food delivery.
Delivery Hero is conducting a strategic review that could result in asset sales, spin-offs, or a full sale of the company. The Berlin-based firm has already begun divesting non-core assets. In March, it agreed to sell its Taiwan delivery platform to Grab for $600 million in cash, a move CEO Niklas Östberg called "a key first step" in the review process.
Prosus, the Dutch tech investor, sold a 4.5% stake in Delivery Hero to Uber for approximately €270 million in April. Prosus said the transaction helped satisfy commitments related to its Just Eat Takeaway.com deal and also helped open the door for Uber's potential acquisition.
Regulatory hurdles could complicate any buyout. Citi analyst Monique Pollard noted that Uber and Delivery Hero share operations in 17 markets, raising antitrust concerns. Jefferies flagged "a myriad of antitrust issues" and identified overlaps in 22 markets, including nine in Europe. Regulators may demand asset sales or impose conditions that could slow the process.
For Delivery Hero investors, the key question is whether the current pressure will lead to a formal auction or fizzle out on price. For Uber, the strategic calculus is clear but challenging: how much is it willing to pay to keep pace with DoorDash in an industry where easy growth has faded?
