After weeks of speculation, Uber officially agreed to acquire Delivery Hero, a purchase that will take the ride-hailing and delivery giant’s status to new heights, and to nearly 100 markets across Europe, the Middle East, Latin America, and Asia.
German-based Delivery Hero also made a separate agreement to sell its business in 14 markets, where Uber Eats is already operating, to New York-based investment firm SSW Partners for $1.6 billion.
The $14.8 billion all-stock acquisition isn’t a done deal yet. The purchase will make Uber’s delivery platform one of the largest in the world, at least the largest outside of China, and will likely face regulatory scrutiny. And Uber, which was already the largest shareholder of Delivery Hero, has set a minimum acceptance threshold of 50%, plus one share of Delivery Hero’s outstanding share capital. Prosus, another major shareholder, has agreed to sell its 17% stake as well, according to the announcement.
If the deal closes, Uber will essentially double its footprint, putting it in a better position to compete with DoorDash and Just Eat.
“Together, we’ll nearly double the number of markets where we offer both mobility and delivery services, scaling a proven platform that we believe will create significant long-term value for our customers and shareholders,” Uber CEO Dara Khosrowshahi said in a statement.