Uber reportedly launches US$10.8bn takeover bid for Delivery Hero

Delivery Hero has reportedly received a full takeover offer offer from US ride-hailing and food delivery giant Uber, valuing the deal at around US$10.8 billion.

The Berlin-based owner of online food and grocery delivery platform foodpanda confirmed it received an acquisition proposal from Uber at approximately US$35.70 per share, according to CNBC.

Delivery Hero said it remains fully focused on executing its strategic review process and further updates will be provided as required or appropriate. However, it didn't disclose further details on the offer.

Delivery Hero only announced early last week that Uber had increased its stake in the company to 19.5%, and that Uber holds an additional 5.6% in call options. "Delivery Hero welcomes Uber’s additional investment as a further endorsement of its platform and everyday app strategy. The company remains focused on driving operational performance and executing on the strategic review to deliver long-term value for all shareholders," the statement reads. 

This implies that should the deal proceed, Uber would only need to pay approximately US$8.65 billion more to complete the acquisition.

MARKETING-INTERACTIVE has reached out to Uber and Delivery Hero for a statement respectively.

According to a Financial Times report, Uber’s board met last Saturday (23 May) to discuss raising its acquisition offer. Uber had recently proposed a higher bid of US$41.10 per share to one of Delivery Hero's major shareholders—which would have valued the company at US$12.5 billion—but the offer was rejected, prompting management to re-evaluate its numbers.

On the other hand, Uber's main competitor, DoorDash, has also expressed interest in Delivery Hero's Middle Eastern business, Talabat, according to the report. DoorDash is also evaluating the possibility of acquiring Delivery Hero in its entirety. Its co-founder and CEO, Tony Xu, has already met with Kristin Skogen Lund, chair of Delivery Hero's supervisory board.

Earlier, both the Financial Times and Bloomberg reported that Uber is evaluating whether to acquire Delivery Hero outright, aiming to strengthen its competitiveness against DoorDash in markets outside the US through a merger.

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