Why Uber paid $14.8 billion for Delivery Hero, and what it means for DoorDash and Just Eat

Uber revealed on Thursday that it has agreed to acquire Germany’s Delivery Hero at an equity value of $14.8 billion, a deal set to reshape the competitive landscape of global food delivery.

The combined company would overtake rivals to become the largest food-delivery group outside China, giving Uber a far bigger footprint across Europe, Asia, the Middle East and Latin America through Delivery Hero’s existing operations.

The acquisition is designed to help Uber compete more directly with Just Eat, owned by Dutch group Prosus, and DoorDash in the US, both established players in markets where Delivery Hero already runs delivery services.

Uber CEO Dara Khosrowshahi framed the deal in terms of market reach, saying, ‘Together, we’ll nearly double the number of markets where we offer both mobility and delivery services.’

Uber’s offer is conditional on acceptance from at least 50% plus one share of Delivery Hero shareholders. If met, the deal is expected to close in the second half of next year.

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