Uber Technologies Inc. (UBER.US) spent $318 million to acquire a 4.5% stake in Delivery Hero, betting on the undervalued European food delivery market.

On April 17, Uber Technologies, Inc. (UBER.US) announced that it will acquire approximately 4.5% of the shares of the German food delivery platform Delivery Hero SE from the Dutch investment group Prosus SE for 270 million euros (approximately 318 million US dollars). Prosus' stake in Delivery Hero will decrease from 26.3% to 21.8% as a result of this transaction. It is worth noting that the transaction was made at a price of 20 euros per share, representing a premium of approximately 22% over the one-month volume-weighted average price of Delivery Hero as of April 16. Prosus's strategy of "buying big and selling small": antitrust remedies, concentrating resources to develop the "European version of Meituan" The essence of this transaction is Prosus fulfilling its antitrust commitments made to the European Commission by 2025. In February 2025, Prosus announced a cash acquisition of the European food delivery giant Just Eat Takeaway for 4.1 billion euros (approximately 4.3 billion US dollars). This transaction elevated Prosus to the position of the world's fourth-largest food delivery group, trailing only Meituan and other major players. However, before acquiring Just Eat Takeaway, Prosus already held approximately 27.4% of Delivery Hero. Just Eat Takeaway and Delivery Hero directly compete in core markets such as Germany, where Just Eat Takeaway holds about 70% of the market share in Germany and the Netherlands and Delivery Hero is also headquartered in Berlin. If both companies were under the control of Prosus, it would create a situation of excessive concentration in these markets. On August 11, 2025, the European Commission conditionally approved Prosus's acquisition of Just Eat Takeaway. One of the core conditions of approval was that Prosus must reduce its stake in Delivery Hero to below 10% within a specified period. In other words, Prosus exchanged its stake in Delivery Hero for the "pass" to acquire Just Eat Takeaway. Selling 4.5% of the shares to Uber Technologies, Inc. after the completion of this transaction is a key step in fulfilling this commitment. After the transaction, Prosus's stake in Delivery Hero will decrease to 21.8%, which is still a distance from the EU's requirement to reduce it to below 10%, but it is an important step in fulfilling antitrust commitments. Prosus is expected to continue reducing its stake in the future. Just Eat Takeaway's size and market position far exceed that of Delivery Hero. For Prosus, it is more beneficial to concentrate resources on building a European food delivery giant that can compete with Meituan and DoorDash rather than holding stakes in two competing companies. Selling part of Delivery Hero's shares at a 22% premium satisfies regulatory requirements and provides a decent exit price. Uber Technologies, Inc.'s calculation: Locking in key strategic assets at a reasonable price Exchange "tickets" with a premium. A 22% premium may seem expensive, but considering the regulatory background of this transaction Prosus must sell, and Uber Technologies, Inc. is the most natural buyer Uber Technologies, Inc. actually obtained an opportunity to increase its stake in Delivery Hero at a "reasonable premium" during a relatively closed window. Delivery Hero is one of the core players in the European food delivery market, covering over 70 countries with a market capitalization of approximately 6 billion US dollars. Investing 318 million US dollars to increase the stake to 4.5% is equivalent to Uber Technologies, Inc. consolidating its strategic relationship with Delivery Hero for a fraction of its own market value. Furthermore, betting on the valuation recovery of Delivery Hero. Barclays maintains an "overweight" rating on Delivery Hero, with a target price of 39.40 euros. Based on the purchase price of 20 euros, if Delivery Hero's stock price returns to Barclays' target price, Uber Technologies, Inc.'s investment could nearly double in return. Delivery Hero's stock price has rebounded since its low point in November 2025, but it is still far below the levels during the peak of the pandemic. Uber Technologies, Inc.'s investment could be an important catalyst for valuation. In addition, building a "non-controlling alliance" to counter consolidation pressure. The European food delivery industry is experiencing an unprecedented wave of consolidation. The European online food delivery market is expected to grow at a compound annual growth rate of 8% from 2025 to 2030. Although the growth rate has slowed compared to the pandemic period, the market size continues to expand, and industry consolidation is raising the competitive barriers for major players even further. For smaller platforms that cannot participate in consolidation, their survival space will continue to be squeezed. In 2025, DoorDash acquired Deliveroo in the UK for 2.9 billion pounds, and Prosus acquired Just Eat Takeaway for 4.3 billion US dollars. In 2026, Uber Technologies, Inc. announced an expansion of its delivery business in seven European countries. In this round of consolidation, Uber Technologies, Inc. chose to establish a "shareholding tie+ business cooperation" relationship with Delivery Hero rather than direct acquisition. This "light asset" strategic alliance avoids high acquisition costs and antitrust scrutiny while ensuring a strategic foothold in the European market. Previously, Uber Technologies, Inc. and Delivery Hero had established a strategic cooperation, with Delivery Hero integrating some international businesses into Uber Technologies, Inc.'s platform. This increase in stakes further deepens their cooperation.