Uber Makes $13 Billion Bid to Acquire Delivery Hero

The ride-hailing and delivery giant, Uber Technologies, Inc. has announced a $13 billion acquisition offer for Delivery Hero. Uber entered into a business combination agreement to launch a voluntary takeover offer for the platform, aiming to expand its global footprint to 99 markets.

As per Uber, the transaction values Delivery Hero at an implied equity value of $14.8 billion for 100 per cent of the company, which adjusts to $13.7 billion when accounting for Uber's prior stake purchases.

Under the specific terms of the voluntary takeover offer, Uber will offer Delivery Hero shareholders a cash consideration of EUR 41.50 per share. The transaction is expected to create a platform with combined pro-forma Gross Bookings of $236 billion based on 2025 figures.

To satisfy antitrust and market overlaps, Delivery Hero simultaneously signed a separate agreement with New York-based investment firm SSW Partners.

SSW Partners will acquire Delivery Hero's businesses in 14 specific markets where Uber Eats and Delivery Hero currently overlap, for a consideration of approximately $1.6 billion. Uber will not acquire control over these 14 divested regional segments.

What does Uber’s Delivery Hero deal mean for global expansion?

"After 15 years of incredibly hard work, we're partnering with Uber in a transaction valuing Delivery Hero at EUR 13bn! Very proud of what the team has built, and excited for the future," Niklas Ostberg, Co-founder and CEO of Delivery Hero, stated on X.

The takeover offer is subject to a minimum acceptance threshold of 50 per cent plus one share of Delivery Hero's outstanding share capital, which includes the shares already owned by Uber.

"Delivery Hero's talented team has built an extraordinary business, with beloved local brands and leading positions across many of the world's fastest-growing delivery markets," said Dara Khosrowshahi, CEO of Uber.

"Together, we'll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders,” the Uber CEO said.

Before the official announcement, Uber directly held roughly 24.77 per cent of Delivery Hero's issued voting share capital, alongside an additional economic exposure of 11.74 per cent through equity derivatives.

"We are excited about this opportunity with Uber and the possibilities it offers for our employees, shareholders, and partners. Uber's global mobility and delivery platform and our shared commitment to innovation make this the right partnership to build on Delivery Hero's strengths in local food delivery and Quick Commerce, and to take our Everyday App strategy further for our customers," Ostberg said in a statement.

"I'm grateful to our people for building this company over 15 years, and we look forward to this great next chapter together," he added.

(With inputs from ANI)