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. expansion into Europe's competitive market. The move aligns with Prosus's efforts to reduce its holdings amid EU antitrust rules linked to its €4.1 billion acquisition of Just Eat Takeaway.
Strategic Investment Amid Market Pressures
San Francisco-based Uber describes the purchase as an opportunistic step, following its $300 million investment in Delivery Hero earlier in May 2024. The agreed price sits just below Delivery Hero's Thursday closing price of €20.14, yet commands a 22% premium over the stock's one-month average. Delivery Hero operates in roughly 70 countries through brands like Talabat, Glovo, and Foodpanda, but faces shareholder scrutiny over uneven performance.
Prosus Divests to Meet Regulatory Demands
Prosus, holding about 27% of Delivery Hero, sells the stake to comply with EU competition requirements from its Just Eat Takeaway takeover. The Dutch investor plans to trim its position to single digits by August 2026, considering options like block sales or gradual market disposals. Activist investor Aspex Management, with a 9% stake, has shown interest in buying part of Prosus's shares, though talks remain unresolved; Aspex also pressures chief executive Niklas Östberg to streamline operations and offload underperforming assets.
Broadening U.S. Footprint in Europe
Uber's investment reflects a pattern of North American firms targeting Europe's delivery sector, exemplified by DoorDash's £2.9 billion purchase of Deliveroo last year. Uber recently extended its food delivery services to seven new countries, building on international growth ambitions. This deal highlights ongoing consolidation as operators navigate intense competition, regulatory hurdles, and demands for operational efficiency across fragmented markets.
