After weeks of speculation, Uber officially agreed to acquire Delivery Hero, a purchase that will take the ride-hailing and delivery giant’s position to new heights and into nearly 100 markets across Europe, the Middle East, Latin America, and Asia.
The German-based delivery hero also struck a separate deal to sell its business in the 14 markets where Uber Eats already operates to New York-based investment firm SSW Partners for $1.6 billion.
The $14.8 billion all-stock acquisition is not a completed deal yet. The purchase would make Uber’s delivery platform one of the largest in the world, at least the largest outside China, and would likely face regulatory scrutiny. And Uber, which was already Delivery Hero’s largest shareholder, has set a minimum approval threshold of 50% and a share of Delivery Hero’s outstanding share capital. According to the announcement, another major shareholder Prosus has also agreed to sell its 17% stake.
If the deal closes, Uber will essentially double its footprint, putting it in a better position to compete with DoorDash and Just Eat.
Uber CEO Dara Khosrowshahi said, “Together, we will nearly double the number of markets where we provide both mobility and delivery services, expanding a proven platform that we believe will create significant long-term value for our customers and shareholders.” said in a statement.
