Uber takes control of the German group, marking a key step in the consolidation of the meal delivery sector.
The German meal delivery company Delivery Hero announced this Thursday, July 16, that it was accepting a takeover offer from the American giant Uber, an operation valued at 12.7 billion euros. This acquisition marks a new major step in the consolidation of the meal delivery sector.
Uber was already the largest shareholder of its German competitor, with around 25% of shares held directly and almost an additional 12% via financial instruments. This offer would allow it to obtain the majority of the group established in Berlin. The offer of 41.50 euros per Delivery Hero share corresponds to a premium of approximately 34% compared to the average share price over the last three months.
“Uber’s global mobility and delivery platform, as well as our shared commitment to innovation, make this partnership the right choice to capitalize on Delivery Hero’s strengths in local food delivery and quick commerce,” said Niklas Östberg, CEO and co-founder of Delivery Hero, quoted in the press release.
This is a new consolidation operation in the meal delivery sector, after the acquisition of the French Deliveroo by the American DoorDash and that of the Dutch Just Eat Takeaway by its compatriot Prosus. Delivery Hero, like the entire food delivery sector, has experienced strong growth since its founding in 2011, further accelerated by the Covid-19 pandemic. But the business was never profitable.
The sale should be completed in the second half of 2027, subject to regulatory authorizations, in particular the green light from the competition watchdog, Delivery Hero hopes. The offer is also conditional on a minimum acceptance threshold of 50% of the capital plus one share. Furthermore, Uber undertakes that the German company will be managed “independently and exclusively” by its management board and that its employees will be “protected” for three years. The American group is also committed to investing two billion euros until 2031 in Germany.
To pay off its debts, Delivery Hero will also sell activities in 14 countries in Europe and South America for 1.4 billion euros to SSW Partners, an investment company based in New York.
Around 8:00 GMT, investors on the Frankfurt Stock Exchange kept a cool head in the face of the announcement, with the group’s shares falling 1.00% to 37.80 euros.
