The delivery and ride-hailing giant, Uber Technologies, Inc. has proposed a USD 13 billion acquisition for Delivery Hero.
Uber entered into a merger agreement to initiate a voluntary acquisition bid for the platform, seeking to broaden its international presence to 99 markets.
According to Uber, the transaction values Delivery Hero at an implied equity valuation of USD 14.8 billion for the entire company, which adjusts to USD 13.7 billion when considering Uber’s previous stake acquisitions.
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According to the defined conditions of the voluntary takeover proposal, Uber will provide Delivery Hero shareholders with a cash payment of EUR 41.50 for each share. The deal is anticipated to establish a platform with an aggregate pro-forma Gross Bookings of USD 236 billion according to 2025 estimates.
To address antitrust concerns and market overlaps, Delivery Hero concurrently entered into a distinct agreement with the New York-based investment company SSW Partners. SSW Partners is set to purchase Delivery Hero’s operations in 14 distinct markets where there is currently overlap with Uber Eats, for an amount close to USD 1.6 billion. Uber will not gain control of these 14 divested regional segments.
The acquisition proposal requires a minimum acceptance level of 50 percent plus one share of Delivery Hero’s total share capital, encompassing the shares that Uber already holds.
“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.
“By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world’s most dynamic economies, while creating more opportunities for merchants and couriers,” Khosrowshahi added.
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“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.”
Prior to the formal announcement, Uber possessed approximately 24.77 percent of Delivery Hero's total voting share capital, in addition to an extra economic stake of 11.74 percent via 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.
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“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.
Global technology investor Prosus has committed to an irrevocable agreement to offer its full stake in Delivery Hero, accounting for approximately 17 percent of the total shares outstanding. This deal increases Uber’s overall economic stake to about 53 percent.
In addition, Uber pledged to refrain from engaging in a Domination and Profit Transfer Agreement for a period of three years. The completion of the agreement is anticipated to occur in the latter part of 2027.