Uber has struck a deal to purchase an additional 4.5% stake in Delivery Hero for €270 million, buying shares at €20 each from the company's largest shareholder, Prosus. This transaction boosts Uber's ownership to about 7% in the German food delivery firm and signals deepening U.S. investment in Europe's competitive market. The move aligns with Uber's aggressive push into international delivery operations amid ongoing industry consolidation.
Strategic Sale Driven by EU Regulatory Pressures
Prosus, a Dutch investment group holding roughly 27% of Delivery Hero, sells the stake to meet EU competition rules linked to its €4.1 billion acquisition of Just Eat Takeaway. The regulator requires reductions in overlapping ownership to prevent market dominance. Prosus plans to trim its position to single digits by August 2026 through methods like block sales or gradual sell-offs, reflecting broader pressures on large investors to divest amid antitrust scrutiny.
Opportunistic Pricing and Uber's Expansion Play
Uber describes the investment as opportunistic, with the €20 share price sitting just below Delivery Hero's €20.14 Thursday close—after a 7% daily gain—but offering a 22% premium over the one-month average. This follows Uber's $300 million investment in May 2024, part of its strategy to expand food delivery into seven new countries recently. The deal mirrors trends like DoorDash's £2.9 billion purchase of Deliveroo last year, as North American firms target Europe's fragmented delivery landscape.
Delivery Hero Faces Shareholder Demands for Overhaul
Operating in 70 countries with brands like Talabat, Glovo, and Foodpanda, Delivery Hero contends with investor frustration over stagnant performance. Activist shareholder Aspex Management, owning 9%, demands operational streamlining and asset sales, threatening to oust CEO Niklas Östberg without changes. Aspex has eyed Prosus's stake but reached no deal, heightening uncertainty as Delivery Hero navigates competitive threats from U.S. entrants and internal reforms.
