Uber makes massive $14.8 billion bet to take over Delivery Hero

Under the terms of the voluntary takeover offer, Uber will pay €41.50 per Delivery Hero share, valuing the company at approximately $14.8 billion on a fully diluted basis. Adjusted for Uber's previous stake purchases, the transaction is valued at $13.7 billion.

As part of the broader transaction, Delivery Hero has signed a separate agreement with SSW Partners, a New York-based investment firm with extensive experience in cross-border investments.

Under this arrangement, SSW Partners will acquire Delivery Hero's businesses in 14 markets, primarily where Uber Eats and Delivery Hero have overlapping operations, for approximately $1.6 billion. The transaction is subject to the completion of Uber's takeover offer and customary closing conditions.

Uber said it will not acquire control of the businesses being transferred to SSW. Instead, SSW will independently oversee the process of identifying long-term strategic owners for those operations.

"Delivery Hero's talented team has built an extraordinary business, with beloved local brands and leading positions across many of the world's fastest-growing delivery markets," said Dara Khosrowshahi, CEO of Uber.

"By bringing our platforms together, we will extend affordable, reliable delivery to many millions more people in many of the world's most dynamic economies, while creating more opportunities for merchants and couriers. 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," he added.

Delivery Hero CEO Niklas Östberg described the agreement as a significant milestone for the company.

"We are excited about this opportunity with Uber and the possibilities it offers for our employees, shareholders, and partners. Uber's global mobility and delivery platform and our shared commitment to innovation make this the right partnership to build on Delivery Hero's strengths in local food delivery and quick commerce, and to take our Everyday App strategy further for our customers," Östberg said.

"I'm grateful to our people for building this company over the past 15 years, and we look forward to this great next chapter together," he added.

Kristin Skogen Lund, Chair of the Delivery Hero Supervisory Board, said the highly competitive nature of the food delivery business made scale increasingly important.

"The food delivery business is highly competitive and scale dependent. It is challenging to build from a European base, yet we have achieved an enormous amount over the past 15 years. Joining forces with a strong partner now is the right move for Delivery Hero to strengthen its long-term competitiveness and create value for all stakeholders," she said.

"The Supervisory Board has been closely involved throughout the process and fully supports the proposed transaction. We appreciate Uber's commitment to preserving and building on Delivery Hero's strengths," Lund added.

Commenting on SSW Partners' role, Josh Steiner and Antonio Weiss said the firm was committed to supporting the businesses it would acquire.

"We are pleased to acquire these market-leading businesses. We will support management to ensure these businesses continue to grow, invest in their people, and deliver exceptional service to customers. At the same time, we will work to identify the best long-term strategic owners to help these businesses thrive," they said.