Uber is making a big move in the food delivery business. The company has recently published a press release announcing it is set to acquire Delivery Hero's food delivery business in a deal worth $14.8 billion. Under the deal, Uber will offer Delivery Hero shareholders €41.50 per share in cash.
Regarding the deal, Dara Khosrowshahi, CEO of Uber, said, “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.”
Uber will pay for the business through a mix of cash and shares. Once the deal is closed, the company will have a stronger presence in many markets where Delivery Hero already has a large customer base. It is one of the biggest deals the food delivery industry has seen in recent years.
Additionally, Uber has committed to using commercially reasonable efforts to invest €2 billion in Germany through 2031. The focus will be on developing its local corporate workforce and growing its nationwide business. Niklas Östberg, Co-Founder and CEO of Delivery Hero, said, “This acquisition and Uber’s planned investment in Germany demonstrate the attractiveness of the European tech ecosystem, and we intend to keep contributing to its growth.”
For most people, the biggest question is simple. Will ordering food become better after this deal? There is a good chance deliveries could become quicker. A larger delivery network usually means more delivery partners and better coverage. This can help reduce waiting time, especially in busy cities.