BERLIN — In a major move to expand its international food delivery dominance, Uber Technologies Inc. has submitted an indicative €10 billion ($11.6 billion) takeover proposal for Berlin-based rival Delivery Hero SE. The move arrives at a time when the European platform is facing structural vulnerabilities and aggressive pushback from activist shareholders.
Delivery Hero confirmed the approach, stating that Uber offered €33 per share for a full potential takeover. While the target company noted it remains “fully focused on executing its strategic review process,” internal and external pressures have set the stage for what could become one of the most significant consolidation events in the global delivery market.
A Vulnerable Giant Targets Strategic Review
The aggressive bidding from Uber comes on the heels of major governance shakeups at Delivery Hero. Long-time co-founder and CEO Niklas Östberg recently announced his departure under heavy activist pressure from Hong Kong-based investment firm Aspex Management, which holds a 14.6% stake in the group. Aspex and other investors have long lobbied for a streamlined business structure, expedited asset sales, and new leadership to maximize shareholder value.
Uber’s bid strategically capitalizes on this transitional instability. Over the last several months, the San Francisco-based ride-hailing and logistics titan has been quietly building an influential launching pad, using derivatives and block share purchases via Morgan Stanley to accumulate a 19.5% direct stake in Delivery Hero, along with an additional 5.6% held in options.
Shareholders Hold Out for a Bidding War
Despite the massive €10 billion valuation headline, the initial offer of €33 per share has faced immediate friction from Delivery Hero’s major institutional investors. Several prominent shareholders quickly rebuffed the baseline number, arguing that the pricing fails to include an adequate control premium over the company’s recent trading averages.
Insiders report that major stakeholders are refusing to settle for less than €40 per share, which would elevate the total deal value closer to €13 billion. Anticipating this resistance, updates indicate that Uber’s executive board has already discussed modifying the bid upward to €38 per share to keep negotiations alive.
Compounding the tension is the threat of an escalating bidding war. Rival platform DoorDash Inc. has reportedly been circling the company as well, holding exploratory talks regarding the potential purchase of Delivery Hero’s highly profitable Middle Eastern division, Talabat, or exploring an independent full-company takeover of its own.
The Global Consolidation Play
For Uber, acquiring Delivery Hero is an aggressive geopolitical play rather than a quest for mere local operational scale. While Uber Eats enjoys robust market share in domestic and key Western economies, Delivery Hero commands dominant, high-growth footprints across 65 countries spanning the Middle East, Eastern Europe, Southeast Asia, and Latin America.
Securing these territories would not only supercharge Uber’s global booking footprint but effectively block DoorDash from establishing its own international network. The battle highlights an industry-wide trend toward global consolidation as major tech platforms look to absorb competitors to drive long-term profitability.
If a deal is successfully negotiated, it will still face intensive regulatory and antitrust scrutiny across dozens of international jurisdictions, particularly given Uber’s massive existing footprint in the digital gig economy.