German food delivery service Delivery Hero has agreed to a multi-billion-euro takeover by US ride-hailing company Uber. The two companies signed a business merger agreement, Delivery Hero announced on Thursday. Under the deal, the US corporation is offering Delivery Hero shareholders a cash payment of 41.5 euros per share, valuing the company at 13 billion euros.
"This acquisition and Uber's planned investment in Germany demonstrate the attractiveness of the European tech ecosystem," said Delivery Hero CEO Niklas Östlund. "We intend to continue actively contributing to its growth." In this context, Uber has committed to maintaining Delivery Hero's headquarters in Berlin and to making no changes to the workforce there until at least 2029, the food delivery company added.
The US corporation has also pledged to strive to invest two billion dollars in Germany by 2031, with a focus on "expanding its local corporate workforce, growing its nationwide business, and introducing autonomous driving offerings and partnerships with the German automotive industry."
According to the companies, Delivery Hero's management board and supervisory board support the transaction. "Joining forces with a strong partner is the right step now to best secure future competitiveness and the ability to create value for all of Delivery Hero's stakeholders," said Supervisory Board Chair Kristin Skogen Lund.
Delivery Hero is headquartered in Berlin and offers delivery services in dozens of countries across Asia, Europe, Latin America, the Middle East, and North Africa, though in its home market of Germany, the company is barely active.
“Delivery Hero’s talented team has built an extraordinary business, with beloved local brands and strong positions across some of the world’s fastest-growing delivery markets,” said Dara Khosrowshahi, CEO of Uber. “By bringing our platforms together, Uber will extend affordable, reliable delivery to many millions more people in some of the world’s most dynamic economies, while creating more opportunities for merchants and couriers.”
“We are excited about this opportunity with Uber and the possibilities it offers for our employees, shareholders, and partners. Uber’s global mobility and delivery platform and our shared commitment to innovation make this the right partnership to build on Delivery Hero’s strengths in local food delivery and Quick Commerce, and to take our Everyday App strategy further for our customers,” said Niklas Östberg, CEO and Co-Founder of Delivery Hero. “I’m grateful to our people for building this company over 15 years, and we look forward to this great next chapter together.”
Since its founding in 2011, the company has, like the entire industry, seen strong growth, accelerated further by the coronavirus pandemic, but has never turned a profit. To reduce its debt, Delivery Hero is now selling business units in 14 countries across Europe and South America for 1.4 billion euros to SSW Partners, a New York-based investment firm.
The world's still-numerous delivery platform brands now belong to a handful of companies. Besides Uber, other major players include US company DoorDash, which recently absorbed Deliveroo, and Dutch tech investor Prosus, which has since taken over Just Eat Takeaway, the parent company of Lieferando.
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