Delivery Hero’s board has given the green light to Uber’s $15 billion takeover bid, aiming to create the largest on-demand food delivery platform globally. The deal, which if approved, will double Uber’s global delivery footprint, is seen as a strategic move to rival giants like DoorDash and Just Eat Takeaway.
Uber, already a major shareholder in Delivery Hero, has set a minimum acceptance threshold of 50%, plus one share of Delivery Hero’s outstanding share capital. Meanwhile, another significant shareholder, Prosus, has agreed to sell its 17% stake in the deal. Delivery Hero had previously sold its businesses in 14 markets to New York-based SSW Partners for $1.6 billion.
The tie-up is part of a wider trend of consolidation in the on-demand delivery industry, with recent acquisitions including Uber’s purchase of Turkey-based Getir for $335 million, and Grab’s acquisition of Delivery Hero’s Foodpanda in Taiwan for $600 million in cash. DoorDash has also made a significant move by acquiring Deliveroo for $3.87 billion.
The deal, should it go through, would accelerate product innovation and potentially enhance competition in the sector. However, it also raises questions about market dominance and the role of smaller players in the ecosystem.
