Uber buys Delivery Hero for $14.8 billion: the deal that builds a food-delivery giant outside China

Uber agreed on Thursday to buy Germany’s Delivery Hero at an equity value of $14.8 billion, a deal that creates the largest food-delivery group outside China and pulls two of the industry’s biggest names under one roof.

The acquisition pushes forward Uber’s plan to build a food-delivery business large enough to go head-to-head with Just Eat, owned by Dutch group Prosus, and US rival DoorDash. Delivery Hero operates across dozens of countries in Europe, Asia, the Middle East and Latin America, giving Uber a footprint it currently lacks in several of those markets.

Uber CEO Dara Khosrowshahi said the tie-up would let the company offer both ride-hailing and delivery in far more places at once. ‘Together, we’ll nearly double the number of markets where we offer both mobility and delivery services,’ he said.

The deal is not unconditional. Uber has set a minimum acceptance threshold of 50% plus one share of Delivery Hero before the takeover can proceed, meaning a majority of shareholders must agree to sell.

The transaction is expected to close in the second half of next year, subject to shareholder acceptance and regulatory clearance in the multiple markets where the two companies operate.

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