Uber has struck a deal to acquire an additional 4.5% stake in Delivery Hero for about €270 million, purchasing shares at €20 each from the company's largest shareholder, Prosus. This transaction boosts Uber's ownership to roughly 7% in the German food delivery firm and signals deepening U.S. investment in Europe's fragmented delivery market. The move aligns with Uber's aggressive push into international operations amid ongoing industry consolidation.
Strategic Sale Driven by EU Antitrust Rules
Prosus, a Dutch investment group holding around 27% of Delivery Hero, sells the stake to meet European Union competition requirements linked to its €4.1 billion acquisition of Just Eat Takeaway. The EU demands such divestitures to prevent excessive market concentration. Uber described the purchase as an "opportunistic" investment, secured at a price slightly below Delivery Hero's €20.14 closing price on Thursday—yet 22% above the stock's one-month average. This follows Uber's initial $300 million investment in May 2024, reflecting calculated expansion rather than outright rivalry.
U.S. Giants Target Europe's Delivery Landscape
Uber's step comes after DoorDash's £2.9 billion purchase of Deliveroo last year, highlighting North American firms' appetite for Europe's mature delivery sector. Delivery Hero operates in about 70 countries with brands like Talabat, Glovo, and Foodpanda, but faces shareholder discontent over stagnant performance. Activist investor Aspex Management, owning 9% of the company, demands operational streamlining and asset sales, even threatening to oust CEO Niklas Östberg. Prosus plans to reduce its holding to single digits by August 2026 through block sales or market disposals, with Aspex eyeing a portion of those shares.
Implications for Global Delivery Competition
This deal underscores Uber's broader international strategy, including recent food delivery launches in seven new countries. It positions Uber to influence Delivery Hero's direction without full control, potentially aiding efficiencies in a high-cost sector plagued by low margins and regulatory scrutiny. For Delivery Hero, the capital infusion arrives amid pressure to divest underperformers, which could sharpen focus but risks alienating investors if changes falter. As U.S. players consolidate European footholds, smaller operators face intensified rivalry, reshaping consumer access to on-demand services across borders.