Uber’s EUR 13 billion takeover offer for Delivery Hero has secured the backing of the target company’s board, a move that could create one of the largest on-demand food delivery platforms in the world outside of China.
After reviewing the proposal, Delivery Hero’s supervisory and management boards recommended that shareholders approve the deal, stating it was in the best interests of the company, its shareholders, employees, and other stakeholders. The boards also described the price as “fair and adequate” and said the transaction had the “potential to accelerate product innovation.”
What the Uber Deal Means for the Delivery Market
If approved, the acquisition would double Uber’s global footprint and rank its delivery platform among the largest anywhere outside China. The combination would also strengthen Uber’s ability to compete against rivals such as DoorDash and Just Eat Takeaway.
Uber already held the position of largest shareholder in Delivery Hero heading into the offer. The company set a minimum acceptance threshold of 50%, plus one share of Delivery Hero’s outstanding share capital. Prosus, another significant shareholder, has agreed to sell its 17% stake as part of the transaction.
Delivery Hero had previously agreed to divest its businesses in 14 markets where Uber Eats already operates. Those operations are being sold to New York-based investment firm SSW Partners for EUR 1 billion.
A Wave of Delivery Industry Consolidation
The proposed tie-up is the latest sign of consolidation across the on-demand delivery sector. Over the past 18 months, Uber agreed to acquire Turkey-based Getir for EUR 289 million, while Grab announced plans to buy Delivery Hero’s Foodpanda business in Taiwan for EUR 518 million in cash. DoorDash, meanwhile, said it would pay EUR 3 billion for U.K.-based Deliveroo.
Shareholders of Delivery Hero must still approve the offer before the EUR 13 billion deal can close.
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