Uber has offered 10 billion euros to buy Delivery Hero

The German food delivery company Delivery Hero has confirmed that it has received an indicative takeover offer from its American counterpart.

© Gondola Foodservice

The proposal comes after a period of profound upheaval at Delivery Hero, the Berlin-based company that has revised its strategy, restructured its shareholder base, and announced the departure of its co-founder and CEO. Niklas Oestberg officially resigned last week, following campaigns led by several major shareholders in favor of a strategic review.

For its part, Uber Technologies is indeed considering a full acquisition of Delivery Hero. An indicative offer of €33 per share, totaling €10 billion, has been made. If successful, this deal would allow Uber to better compete with DoorDash outside the United States. Meanwhile, the American ride-hailing company has become the largest shareholder of its German counterpart after recently acquiring significant stakes.

To date, Uber owns 19.5% of Delivery Hero after acquiring additional shares and financial instruments, as well as 5.6% in options. The San Francisco-based giant stated that it currently has no intention of increasing its stake to 30% or more, but it periodically reviews its investments and could acquire more if an attractive opportunity arises.

Like its local competitors, Uber is making numerous acquisitions abroad to strengthen its international position. Delivery Hero's presence in more than 60 countries could allow Uber to gain better visibility in markets where it is currently behind Wolt, the DoorDash subsidiary, which is primarily active in Europe.

After the pandemic-induced surge in demand subsided, the food delivery sector is moving towards consolidation in order to gain scale and efficiency. Last year, DoorDash, another major player in the US delivery market, reached an agreement to acquire Deliveroo, its British counterpart, for approximately £2.9 billion.

Prosus, a major technology investor in Delivery Hero (16% stake) and owner of the Latin American food delivery platform iFood, acquired Amsterdam-based Just Eat Takeaway.com for €4.1 billion. Meanwhile, a former Walmart executive acquired Grubhub, a pioneering American food delivery company, from Just Eat Takeaway.