Uber Expands Global Food Delivery Footprint with $14.8 Billion Acquisition of Delivery Hero
Uber, the leading ride-sharing and food delivery giant, announced Thursday its agreement to acquire German food delivery powerhouse Delivery Hero in a landmark deal valued at approximately $14.8 billion. This strategic acquisition is set to integrate major delivery platforms, including South Korea’s highly popular Baemin, into Uber’s expansive global network, significantly enhancing its market presence and operational scale.
The definitive merger agreement outlines that Uber will launch a voluntary tender offer, providing Delivery Hero shareholders with 41.50 euros (approximately $52) per share in cash. This offer places the total valuation of Delivery Hero at roughly $14.8 billion for the entire company, or an estimated $13.7 billion when accounting for Uber’s existing stake in the firm.
This transformative acquisition grants Uber control over Delivery Hero’s prominent brands across 50 diverse markets. Key platforms such as Baemin, Foodora, Hungerstation, and Foodpanda will now operate under Uber, extending its combined market reach to an impressive 99 countries. This integration is projected to drive gross bookings to an estimated $236 billion by 2025, solidifying Uber’s position in the fiercely competitive global food and grocery delivery sector.
To ensure regulatory compliance and optimize market efficiencies, certain markets where Uber Eats and Delivery Hero currently have direct competitive overlaps will be excluded from the acquisition. Separately, Delivery Hero has entered into an agreement to divest its operations in 14 of these markets to New York-based SSW Partners for approximately $1.6 billion. Uber will not assume operational control of these specific businesses, streamlining the merger process.
Dara Khosrowshahi, CEO of Uber, emphasized the strategic importance of the deal, stating, “Delivery Hero’s talented team has built an extraordinary business, with beloved local brands and strong positions across some of the world’s fastest-growing delivery markets.” He added that “combining these platforms will extend affordable delivery options to millions more people and create expanded opportunities for both merchants and couriers globally.”
Highlighting the significance of specific regional assets, an Uber official remarked on the “meaningful opportunity” to collaborate with Baemin. The company plans sustained investment in Baemin’s talent, brand equity, and technological infrastructure, underscoring Korea’s status as one of Uber’s core strategic markets.
Uber intends to finance this substantial acquisition through a combination of its existing cash reserves and new borrowing, which will be backed by a bridge loan of approximately 14 billion euros.
The successful completion of the offer is contingent on receiving acceptance from over 50 percent of Delivery Hero shares, in addition to securing necessary regulatory approvals. However, Uber has already secured irrevocable commitments covering 16.68 percent of Delivery Hero’s shares. This, combined with Uber’s pre-existing stakes, will effectively push its total economic interest above 53 percent. The comprehensive deal is anticipated to finalize in the second half of 2027.
