Uber has increased its stake in Delivery Hero to 19.5%, a move that signals the ride-hailing giant is exploring a full takeover of the Berlin-based food delivery company. The disclosure, filed with regulators, positions Uber to potentially reshape the global food delivery market if it moves ahead with an acquisition.
A bigger bet on Delivery Hero
The 19.5% stake is a notable jump from Uber's previous holding. While the company hasn't detailed its exact timeline, the increase suggests Uber is serious about deepening its ties with Delivery Hero. Delivery Hero operates in more than 70 countries, including strongholds in Europe, the Middle East, and Latin America. Uber already runs Uber Eats in many of those same regions, meaning a full takeover would bring two major platforms under one roof.
Uber hasn't publicly commented on the stake increase or the takeover exploration. Delivery Hero also declined to discuss the matter. But the regulatory filing makes the intentions clear: Uber is weighing a deal that would give it direct control over one of its biggest competitors.
What a full takeover would mean
A full acquisition would combine two of the world's largest food delivery networks. That could lead to streamlined operations and cost savings for Uber, but it would also raise serious questions about market competition. Regulators in the European Union and other regions would likely scrutinize any deal that reduces the number of independent players in the sector.
Delivery Hero has faced its own challenges, including pressure from activist investors and a tough macroeconomic environment. For Uber, snapping up Delivery Hero would mean gaining access to markets where it's currently weaker, such as parts of Asia and the Middle East. But integration would be complex, and the combined entity might face antitrust hurdles that could force divestitures in some countries.
The global food delivery market has already seen consolidation in recent years. Just Eat Takeaway merged with Grubhub, and DoorDash has expanded internationally. An Uber-Delivery Hero tie-up would be the biggest merger yet, potentially altering the competitive dynamics across dozens of countries.
No official offer has been made, and Uber hasn't disclosed any proposed price. The next step will likely involve informal talks with Delivery Hero's board and regulatory bodies. For now, the 19.5% stake gives Uber a strong seat at the table, but whether it leads to a full deal remains an open question.
