Uber Technologies Inc. has confirmed a significant increase in its stake in European food delivery giant Delivery Hero SE. The San Francisco-based firm has agreed to purchase an additional 4.5% stake in the company for approximately €270 million (£235.4 million).
The Details of the Deal
Uber is acquiring roughly 13.6 million shares at a price of €20.00 each. These shares are being purchased from Prosus SE, a Dutch investment group and currently the largest shareholder in Delivery Hero.
The purchase price represents a 22% premium over the one-month volume-weighted average price of the shares as of Thursday. Following the completion of this transaction, Uber’s total holding in Delivery Hero is expected to rise to approximately 7%.
Why the Move Matters
This investment is seen as a strategic “opportunistic” move by Uber as it seeks to strengthen its footprint in the international food delivery market. While Uber Eats is a major player globally, Delivery Hero operates in around 70 countries under various brands like Glovo, Talabat, and Foodpanda.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, welcomed the move:
“As a global tech leader, Uber’s increased position is a meaningful endorsement of our platform, our strategy, and our ongoing work to deliver long-term value for all shareholders.”
Regulatory Pressure on Prosus
The sale also helps Prosus satisfy requirements set by the European Commission. Following its €4.1 billion acquisition of Just Eat Takeaway.com, regulators mandated that Prosus reduce its stake in Delivery Hero to address competition concerns.
Prosus, which will see its holding drop from 26.3% to 21.8% after this deal, is under pressure to reduce its stake to single digits by August 2026.
Market Context
The deal comes amid a wave of consolidation in the delivery sector. Last year, US-based DoorDash acquired Britain’s Deliveroo for £2.9 billion, highlighting the intense competition and the desire for North American companies to gain a firmer grip on the European and global delivery landscape.
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