Inside Uber’s $14.8 billion Delivery Hero buyout: nearly doubling markets for mobility and delivery

Ride-hailing giant Uber has agreed to acquire Germany’s Delivery Hero in a deal valuing the food-delivery company at $14.8 billion in equity, according to an announcement made on Thursday.

The combined company would become the largest food-delivery group operating outside China, bringing together Uber’s mobility and delivery network with Delivery Hero’s international reach across Europe, Asia and the Middle East.

Uber has been working to expand its delivery business to compete more directly with Just Eat, owned by Dutch group Prosus, and DoorDash in the US. Buying Delivery Hero significantly widens the number of countries where Uber can offer food delivery alongside rides.

Announcing the deal, Uber CEO Dara Khosrowshahi said, ‘Together, we’ll nearly double the number of markets where we offer both mobility and delivery services.’

The acquisition carries a condition: Uber requires acceptance from holders of at least 50% plus one share of Delivery Hero. If that threshold is met, the deal is expected to be completed in the second half of next year.

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