Uber Eyes Full Delivery Hero Takeover in $11.8 Billion Play

Uber Technologies is exploring a full takeover of Germany's Delivery Hero, people familiar with the matter said, a strategic move that would absorb the $11.8 billion rival and dramatically expand Uber's global food delivery operations to challenge DoorDash.

"A Delivery Hero acquisition would hand UBER a formidable international food delivery footprint spanning Asia, Latin America, and the Middle East — markets where it currently has limited or no direct presence," a Barchart analyst report stated on Friday.

Uber recently disclosed a 19.5% stake in Delivery Hero, with an additional 5.6% in options, built with assistance from Morgan Stanley. The potential acquisition follows pressure on Delivery Hero from activist investors to sell assets, making the Berlin-based company vulnerable. Delivery Hero's shares have risen almost 50 percent in Frankfurt this year, giving it a market value of around 10.2 billion euros ($11.8 billion).

A full acquisition would consolidate the highly competitive food delivery market, giving Uber access to Delivery Hero's operations in over 60 countries. This would directly counter DoorDash's international expansion, particularly its Wolt unit in Europe, and potentially improve Uber's delivery segment margins through increased scale.

The potential deal is still in its early stages, with Uber working with advisers to evaluate the options. The ride-hailing giant has been speaking to other Delivery Hero investors to gauge interest in a full takeover. A transaction would likely face significant regulatory scrutiny across multiple jurisdictions.

For Uber, the move is part of a broader strategy of aggressive deal-making to fortify its market position. The company has over 30 partnerships in the autonomous vehicle space and recently integrated hotel bookings via Expedia. A successful acquisition of Delivery Hero would add another major pillar to its burgeoning "super app" ecosystem, providing its 50 million Uber One members more reasons to stay within its platform.

The news had an immediate market impact, with Uber's stock (UBER) falling around 1.7% in New York trading on the day of the report. Despite the short-term dip, Wall Street analysts remain largely bullish on UBER for 2026, citing its forward P/E of about 25x, a $2 billion advertising business, and a growing autonomous vehicle footprint as reasons for long-term value.

This article is for informational purposes only and does not constitute investment advice.