Uber Technologies, Inc. (UBER.US) plans to acquire the German food delivery platform Delivery Hero. Global food delivery industry consolidation continues to heat up.

According to informed sources, the ride-hailing giant Uber Technologies, Inc. (UBER.US) is in deep negotiations with the German food delivery platform Delivery Hero regarding an acquisition, and an agreement could be reached as early as this week. The sources stated that Uber Technologies, Inc. is eager to finalize the deal with Delivery Hero as soon as possible. If the deal is finalized, it is expected that the valuation of Delivery Hero will be significantly higher than its recent trading price of about 36 euros per share. Since the beginning of this year, Delivery Hero's stock price has risen by approximately 62%, and the company is currently valued at about 11.2 billion euros (equivalent to 12.8 billion US dollars). Uber Technologies, Inc. currently holds about 24.99% of Delivery Hero's shares and has further increased its economic interest to about 36.8% through derivatives. It is understood that Uber Technologies, Inc. had previously made a bid to acquire Delivery Hero for 33 euros per share, but the market widely believes that in order to facilitate the deal, Uber Technologies, Inc. needs to increase its offer. In addition to Uber Technologies, Inc., the Dutch internet investment company Prosus NV is also a significant shareholder of Delivery Hero. Due to Delivery Hero's business covering more than 60 markets globally, and the operational overlap with Uber Technologies, Inc. in parts of Europe and the Middle East, if the deal goes through, it is expected to face scrutiny from antitrust regulators in multiple jurisdictions worldwide. The sources also mentioned that the two parties are still in ongoing negotiations, and there is a possibility of a delay or even the deal falling through. Uber Technologies, Inc. and Prosus have both declined to comment on this matter, and Delivery Hero has not responded to media requests for comment. In recent years, under pressure from shareholders, Delivery Hero has been conducting strategic evaluations to optimize its asset portfolio. One of the company's shareholders, the hedge fund Aspex Management, successfully pushed for the resignation of founder Niklas stberg and has been calling for the company to sell more assets to improve shareholder returns. Meanwhile, the global food delivery industry is entering a phase of consolidation. As the rapid growth during the pandemic diminishes, competition intensifies, and growth slows down, large platforms are seeking to expand their market share through mergers and acquisitions. Last year, the American food delivery platform DoorDash (DASH.US) agreed to acquire the British delivery company Deliveroo Plc; Prosus completed the acquisition of Just Eat Takeaway.com NV, further accelerating industry consolidation. Additionally, some of Delivery Hero's assets have attracted interest from other potential buyers. Informed sources previously revealed that DoorDash and the Saudi instant delivery startup Ninja have expressed interest in acquiring a portion or all of Delivery Hero's Middle East business. Analysts point out that during the COVID-19 pandemic, the food delivery industry experienced rapid growth due to lockdown measures, leading major platforms to rapidly expand and increase investment. However, as restaurants and supermarkets reopen, the industry's growth has significantly slowed down. Furthermore, the strengthening of regulations on gig worker rights in many countries has increased labor costs for companies, prompting the industry to enhance operational efficiency through mergers and acquisitions.