Uber And DoorDash Explore Bid Talks With Delivery Hero
Synopsis
Uber and DoorDash have reportedly held exploratory discussions with investors in Germany-based Delivery Hero ahead of a possible takeover bid, according to a Financial Times report. The talks are understood to still be at an early stage, with no formal offer announced. Investors reportedly indicated they would seek a price above 40 euros per share for Delivery Hero. The discussions come as the global food delivery sector continues facing pressure around competition, profitability, and consolidation. Delivery Hero operates across multiple international markets and remains one of the largest food delivery platforms in the industry.
Uber and DoorDash approached delivery hero investors about a potential takeover.
Key Highlights
- Uber and DoorDash are said to have had an early takeover conversation
- Investors in Delivery Hero reportedly demand more than 40 euros per share
- Uber added to its Delivery Hero stake (now at 19.5%)
- Delivery Hero may look to sell off parts of its business or agree to an outright acquisition
- DoorDash looks to expand into Middle East markets
Investors Signal Pricing Expectations
Uber and DoorDash have both pitched investors on a Delivery Hero site within weeks of making an actual bid for the German food delivery company, according to unconfirmed reports. Reports indicate that some investors are seeking an offer higher than 40 euros per share. Uber,
Delivery Hero Reviews Strategic Options
Delivery Hero’s board is considering the full or partial sale of the company, as well as separate transactions for some of its key businesses. Possible options mentioned in the report include spinning off its operations in the Middle East and South Korea. It comes shortly following CEO Niklas Oestberg’s announcement that he will step down after two major shareholders pressured the board to undertake a strategic review.
Uber bolsters ownership as DoorDash sets eyes on Middle East business
Uber last week upped its stake in the operator of a meal delivery company Delivery Hero from about 7% to about 19.5%, making itself the largest single shareholder of the company. The stake is valued at approximately 1.7 billion euros. At the same time, reports suggest that DoorDash is especially interested in Delivery Hero’s Middle East businesses, including Talabat and HungerStation. Both companies may still decide to abandon the talks, while any potential agreement could also run into major regulatory challenges.
FAQs
- What price are the investors reportedly asking for?
Investors reportedly demand over 40 euros per share.
- How much has Uber invested in Delivery Hero?
Uber had recently raised it's stake to about 19.5%.
- Which businesses reportedly interest DoorDash?
DoorDash apparently wants Talabat and HungerStation in the Middle East.
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