Uber has tabled an indicative takeover bid of €33 per share for Delivery Hero, valuing the German food delivery and logistics company at roughly €8.5 billion. The offer comes as Delivery Hero, which operates across multiple continents through brands including Foodpanda and Glovo, continues a strategic review process.
Uber's move signals consolidation appetite in the competitive food delivery sector, where margins remain thin and customer acquisition costs stay elevated. Delivery Hero shares traded above €25 before the announcement, suggesting Uber's bid carries a modest premium but signals confidence in underlying value. The company faces pressure from competitors including DoorDash in the US and Deliveroo in Europe, alongside mounting operational costs across its sprawling global footprint.
Delivery Hero has faced headwinds in recent years after exiting unprofitable markets, including Russia and South Korea. The strategic review announcement preceded Uber's offer, indicating the board actively solicited interest from potential acquirers. For Uber, the acquisition would consolidate its number-two position in global food delivery behind DoorDash while extending its reach into emerging markets where Delivery Hero maintains strong presence.
The offer remains indicative, meaning Uber has not committed to proceeding at that price. Due diligence and financing approvals would follow any formal bid announcement. Delivery Hero's board must weigh this against alternatives, including maintaining independence or securing competing offers. Uber's cash position supports a deal of this scale, though regulatory scrutiny of further consolidation in food delivery could present obstacles, particularly in European markets where competition authorities monitor sector concentration.
The move underscores how mature digital platforms pursue scale through M&A as organic growth slows and profitability demands intensify.