American Uber and German Delivery Hero have entered into a merger agreement. Uber is offering a cash consideration of 41.50 euros per share, valuing the entire Delivery Hero at 13 billion euros. This is an increase from the previous indicative bids of 33 and 38 euros that the company rejected during May.
Delivery Hero's management and board of directors support the transaction and recommend that shareholders accept the offer. Major shareholder Prosus has already committed to selling its shares, meaning that Uber, together with its previous holdings, will reach an economic interest of approximately 53 percent in the company.
To manage overlapping operations and upcoming competition law reviews, Delivery Hero is selling its business in 14 markets to the New York-based investment firm SSW Partners in a separate agreement. The purchase price amounts to approximately 1.4 billion euros. The acquisition includes the markets where Uber and Delivery Hero currently compete with each other, including Foodora's operations in Sweden, Norway, Austria and the Czech Republic.
By bringing our platforms together, Uber will expand affordable and reliable delivery to millions more people in some of the world’s most dynamic economies, while creating more opportunities for merchants and couriers, says Uber CEO Dara Khosrowshahi.
Niklas Östberg, CEO and co-founder of Delivery Hero, comments on the deal:
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 forward for our customers. I am grateful to our employees for building this company over 15 years, and we look forward to this next chapter together.
In connection with the acquisition, Uber commits to maintaining Delivery Hero’s headquarters in Berlin until at least 2029 and to investing 2 billion euros in Germany by 2031.
The deal is conditional on, among other things, approvals from competition authorities and is expected to close in the second half of 2027. SSW Partners states that it will simultaneously lead a process to find new, long-term owners for the 14 markets, including Swedish Foodora, which it is now acquiring.