Uber consents to a $14.8 billion acquisition of Delivery Hero, which is 26% higher than its offer made in May.

      The May bid was set at €33, which was below the closing price. Eight weeks later, the value has risen to €41.50, and 14 markets have been allocated to a New York firm without any inquiries about competition.

      Uber has reached an agreement to acquire Delivery Hero for €41.50 per share in cash, marking a 26% increase over the initial offer made in May and aligning with the amount that Delivery Hero’s major shareholders had always sought.

      The two companies formalized a business combination agreement on Thursday. This valuation places Delivery Hero at $14.8 billion on a 100% basis, or $13.7 billion when accounting for the stake Uber already owns, and would form a platform covering 99 markets with a combined projected gross booking total of $236 billion by 2025.

      Both the management and supervisory boards of Delivery Hero have unanimously endorsed the proposal and plan to recommend that shareholders accept it. Prosus, the largest shareholder, has irrevocably committed its shares, elevating Uber's total economic interest to approximately 53%.

      This situation differs markedly from eight weeks ago. When Delivery Hero acknowledged Uber's €33 bid in May, the statement did not disclose further details, and at that time, the price reflected a 1.76% discount from the prior closing price. Several significant stakeholders were publicly pushing for a figure closer to €40, while DoorDash was contemplating a full takeover.

      The board had justification to negotiate for a higher price. It did so, securing an additional €1.50 above the amount that certain shareholders had specified.

      The more intriguing aspect of the arrangement is its design to avoid regulatory objections. Delivery Hero has agreed to divest its operations in 14 markets, mainly where Uber Eats and Delivery Hero's territories overlap, to SSW Partners for about $1.6 billion. This transaction is contingent on Uber's offer being finalized.

      Uber will not take control of any of the businesses being transferred, and SSW will independently seek strategic partners for them. However, Uber is providing the majority of the financing for SSW to facilitate the purchase, with SSW repaying over time, including from any future sale proceeds.

      This setup resembles previous divestitures arranged before regulatory review, funded by the acquiring company, and subsequently sold to a firm that will eventually resell the assets. The crucial question regarding whether European and Asian regulators will find the carve-out adequate, and their comfort level with the vendor financing, remains unresolved and will take time to clarify.

      The 14 markets are characterized only as those where the two companies' operations overlap. Key details such as the offer timetable, minimum acceptance threshold, and the necessary regulatory filings will influence whether the deal closes smoothly in the following year or faces delays, and none of these elements were finalized on Thursday.

      For Uber, the strategic rationale remains the same as it was in May. Delivery Hero serves more than 60 countries across Europe, the Middle East, Asia, Africa, and Latin America, through brands like Foodpanda, Glovo, Talabat, and South Korea’s Baedal Minjok.

      It holds the position of the largest non-U.S. food delivery network globally and is the last major market player available, especially after DoorDash acquired Deliveroo and Just Eat Takeaway sold to Prosus.

      Uber had already been preparing for this acquisition, having postponed five of seven planned European launches for 2026 while pursuing Delivery Hero, and it completed its acquisition of Getir in Türkiye earlier this year.

      The context that makes this pricing significant is the allocation of Uber's funds elsewhere. The company has pledged approximately $10 billion to robotaxis, including $1.25 billion invested in Rivian for a fleet of up to 50,000 autonomous vehicles, alongside partnerships with Wayve, Nissan, Lucid, Nuro, and MOIA.

      Dara Khosrowshahi has articulated this strategy in multiple earnings calls as creating “everyday utility.” Allocating $14.8 billion for the delivery segment while financing an autonomy initiative represents a costly interpretation of that concept.

      Delivery Hero's CEO, Niklas Östberg, who co-founded the firm in 2011, announced in May his intention to resign once a successor is appointed, with the transition aimed for the end of 2026 or by March 31, 2027, at the latest. He will pass on a company that will no longer require leadership.