Uber Technologies Inc. has made an indicative offer to acquire Delivery Hero SE at a price of €33 per share [1].
The move signals Uber's intent to expand its food-delivery footprint and increase competition against rivals such as DoorDash [4]. By acquiring the German company, Uber could scale its international logistics network.
The offer, announced Saturday, values Delivery Hero at approximately €10 billion, or about $11.6 billion [3]. In U.S. currency, the bid equates to $38.29 per share [2]. This proposal follows a period of increased investment by Uber, which has grown its stake in Delivery Hero to about 19.5%, up from roughly seven percent [5].
Despite the bid, some investors are seeking a higher valuation. Reports indicate that certain shareholders want a price exceeding €40 per share [6]. This gap between the indicative offer and investor expectations could influence the final terms of any potential agreement, or lead to a stalemate in negotiations.
Uber's strategy involves leveraging its existing ride-sharing infrastructure to dominate the last-mile delivery sector. Integrating Delivery Hero would provide the company with deeper penetration into European and Asian markets where the German firm maintains a strong presence [1].
Delivery Hero said it has confirmed the receipt of the takeover offer [5]. The companies have not yet announced a formal agreement or a timeline for a final decision regarding the acquisition.
“Uber offered to buy Delivery Hero at €33 per share”
This potential acquisition represents a consolidation of the global delivery market. If successful, Uber would transition from a service provider that partners with local firms to a direct owner of one of the world's largest delivery networks. However, the discrepancy between Uber's €33 bid and the €40 price point desired by investors suggests that the deal's success depends on whether Uber is willing to pay a significant premium to secure market dominance.
