Uber Considers Sweeter Deal For Delivery Hero As Takeover Battle Heats Up: Report
Synopsis
Uber is reportedly exploring a higher bid for Delivery Hero as shareholders push for a richer takeover offer and rival interest from DoorDash intensifies.
Uber is reportedly considering increasing its takeover bid for German food delivery giant Delivery Hero after key shareholders rejected an earlier proposal, according to a Financial Times report. The discussions signal intensifying competition in the global food delivery market as major players look to strengthen scale and profitability through consolidation.
Key highlights
- Uber is weighing a higher takeover offer for Delivery Hero
- Initial bid reportedly valued the company at over €11.5 billion
- Some shareholders are seeking more than €40 per share
- Uber previously floated offers of €33 and €38 per share
- DoorDash has also reportedly explored interest in Delivery Hero
- Talks come amid consolidation in the global food delivery sector
Uber Reassesses Bid After Investor Resistance
According to the Financial Times, Uber’s board met on Saturday to discuss raising its offer after resistance from a major Delivery Hero shareholder.
Delivery Hero confirmed over the weekend that it had received a takeover approach from Uber valuing the company at €33 per share.
Uber CEO Dara Khosrowshahi reportedly travelled to Oslo this week to meet Delivery Hero supervisory board chair Kristin Skogen Lund as part of ongoing discussions.
However, the initial proposal failed to convince several investors.
Shareholders Push For Higher Valuation
The Financial Times reported that Uber also approached one of Delivery Hero’s major shareholders with an improved offer of €38 per share in recent days.
That proposal was reportedly rejected as well.
Several shareholders are now said to be seeking a valuation above €40 per share for the entire business, highlighting expectations for a richer premium amid growing strategic interest in the company.
The €38-per-share proposal represented roughly a 15% premium to Delivery Hero’s previous closing share price.
DoorDash Also Monitoring Situation
The takeover situation appears increasingly competitive.
The report said DoorDash has also contacted Delivery Hero shareholders to explore interest, although it has not acquired shares in the company so far.
The involvement of multiple potential bidders could place additional pressure on Uber to improve its proposal if it wants to secure a deal.
Why Delivery Hero Matters
Delivery Hero is one of Europe’s largest food delivery businesses and operates across dozens of international markets.
The company has spent years expanding aggressively through acquisitions and investments in:
- Food delivery platforms
- Quick commerce
- Grocery delivery
- Logistics technology
A successful takeover would considerably strengthen Uber’s global delivery footprint and deepen its presence in Europe and emerging markets.
Consolidation Pressure Builds In Delivery Sector
The food delivery industry has faced mounting pressure since the pandemic-era boom faded.
Companies across the sector are increasingly focused on:
- Profitability
- Market consolidation
- Reducing operational costs
- Expanding scale advantages
Investors have also become more demanding about margins and cash generation following years of aggressive expansion spending.
Analysts say a potential Uber-Delivery Hero deal would rank among the largest consolidation moves in the global delivery industry.
What Happens Next
Uber is now reportedly weighing whether to raise its bid further as discussions continue.
Investors will closely watch:
- Whether Uber improves its offer
- Potential counter-interest from DoorDash
- Delivery Hero shareholder reactions
- Regulatory considerations for any future transaction
A formal deal announcement has not yet been made.
FAQs
Q1: What is Uber offering for Delivery Hero?
Uber initially floated a €33 per share offer and later reportedly approached a shareholder with a €38 per share proposal.
Q2: Why did shareholders reject the bid?
Some Delivery Hero investors reportedly believe the company is worth more than €40 per share.
Q3: Is DoorDash involved?
Yes. Reports say DoorDash has contacted shareholders to explore interest but has not purchased shares.
Q4: Why is Uber interested in Delivery Hero?
A deal would strengthen Uber’s global delivery business and expand its presence in Europe and other international markets.
Q5: Has a final agreement been reached?
No. Discussions are ongoing and Uber is reportedly considering whether to raise its offer further.
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I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
