Uber Technologies Inc. Announces Strategic Acquisition of Delivery Hero

Uber's ambitious takeover offer proposes a cash consideration of €41.50 per share for Delivery Hero shareholders, equating to an Equity Value of approximately $14.8 billion. This figure adjusts to $13.7 billion when accounting for Uber's previously acquired stake in Delivery Hero. The agreement also involves a separate arrangement with SSW Partners, a New York-based investment firm, which will acquire Delivery Hero’s operations in 14 overlapping markets for around $1.6 billion.

Uber will absorb Delivery Hero's operations in 50 markets, which are expected to generate $42 billion in Gross Bookings in 2025. This includes popular brands such as Baedal Minjok in South Korea, foodora in Hungary, and foodpanda across various Asian countries. Conversely, SSW Partners will take control of Delivery Hero’s businesses in 14 markets, projected to generate $11 billion in Gross Bookings.

Dara Khosrowshahi, CEO of Uber, expressed enthusiasm about the acquisition, stating, “By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world’s most dynamic economies.” He emphasized the potential for creating more opportunities for merchants and couriers through this partnership.

Niklas Östberg, CEO of Delivery Hero, echoed this sentiment, highlighting the strengths of both companies and their shared commitment to innovation. He noted, “Joining forces with a strong partner now is the right move for Delivery Hero to best secure its future competitiveness.”

The combination is expected to spur innovation and deliver considerable benefits for consumers, merchants, couriers, and drivers. By merging Uber’s technology platform with Delivery Hero’s local brands and delivery capabilities, the companies aim to enhance consumer choice and create a more seamless user experience across both mobility and delivery services.

The transaction will nearly double the number of markets where Uber provides both services—from 34 to 58 markets—significantly expanding its addressable customer base. Uber anticipates that this cross-platform engagement will drive higher Gross Bookings and profits, with projections indicating that the acquisition will be accretive to Non-GAAP EPS upon closing.

Uber is committed to honoring Delivery Hero's existing employee agreements and plans to retain the company’s headquarters in Berlin, ensuring no changes to its workforce until at least 2029. Additionally, Uber has pledged to invest €2 billion in Germany over the next five years, focusing on local workforce development and collaborations with the German automotive industry to advance autonomous vehicle technologies.

Uber plans to finance the takeover through its existing cash reserves and new debt financing, having secured a committed bridge facility of approximately €14 billion. The transaction structure is designed to maintain Uber's investment-grade credit rating, ensuring gross leverage remains below 2x.

The takeover offer is contingent upon achieving a minimum acceptance threshold of 50% plus one share of Delivery Hero’s outstanding share capital. Other customary conditions include obtaining regulatory approvals. Uber's existing ownership stake, prior to this announcement, was about 24.77% of Delivery Hero’s voting shares, with an additional economic exposure of approximately 11.74% through equity derivatives.

Uber is set to publish an Offer Document outlining the details of the acquisition, pending approval from BaFin, Germany's financial regulatory authority. The acceptance period for the takeover will begin upon the publication of this document.

The acquisition of Delivery Hero represents a transformative step for Uber as it consolidates its position as a leader in the mobility and delivery sectors. With significant investments and a commitment to innovation, the partnership is positioned to create new opportunities for customers and stakeholders worldwide. As the industry continues to evolve, this strategic move underscores Uber's ambition to redefine the delivery landscape, enhancing the way goods and services are accessed globally.