Uber halts its expansion into food delivery in Europe for Delivery Hero.

Uber halts its expansion into food delivery in Europe for Delivery Hero.

      Five months ago, Uber announced plans to launch its food-delivery app in five new European countries. However, it has now quietly decided to halt those plans, with the reasoning appearing linked to a €10bn acquisition attempt.

      According to the Financial Times, Uber has suspended five of its seven anticipated European launches for 2026. In February, Uber had revealed its intentions to expand into Austria, Norway, the Czech Republic, Romania, and Greece, but these five countries are now on pause. Only Denmark and Finland, where it has already started operations, will proceed.

      The official statement from Uber cites momentum, claiming that its recent launches in Finland and Denmark performed well, prompting the company to concentrate on the markets it currently serves. The initial strategy was ambitious, with expectations of an additional $1bn in gross bookings over three years in a competitive European food-delivery landscape.

      A more plausible explanation for this withdrawal revolves around a potential acquisition. Uber is pursuing Delivery Hero, the German food-delivery leader that turned down its approximately €10bn offer in May. Uber currently holds about 19.5 percent of the company and continues to increase its stake.

      The complication arises because Delivery Hero operates in almost all the markets where Uber has just paused its plans. Its Foodora brand is active in Austria, Norway, and the Czech Republic, efood serves Greece, and Glovo is present in Romania.

      Launching Uber Eats against an established competitor and then attempting to acquire it could lead to antitrust issues. An industry source informed TechCrunch that pausing the expansion might alleviate such concerns.

      This situation is significant because Delivery Hero is a major target. It boasts 40,000 employees across 65 countries and is a leader in food delivery outside the US, with strong positions in the Middle East, North Africa, Latin America, and Asia. Interestingly, it exited its home market of Germany after being forced out by a competitor in 2021. Acquiring it would provide Uber with a vast delivery network in one move.

      While Uber has not confirmed this as the reason behind the pause and refers to it as a focus rather than a withdrawal, the timing may not be coincidental. European competition regulators tend to be particularly vigilant, and a company eyeing a target as large as Delivery Hero often tries to avoid potential regulatory issues. Delivery Hero, for its part, has expressed that it welcomes Uber's investment.

      Currently, Uber's expansion plans in Europe involve just two new markets instead of seven, and the five countries on hold may indicate more about strategic dealmaking than about Uber's enthusiasm for expansion.

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Uber halts its expansion into food delivery in Europe for Delivery Hero.

Uber has paused 5 out of 7 intended European food-delivery launches for 2026, a decision seemingly linked to its efforts to acquire Delivery Hero.