German food delivery company Delivery Hero announced on Thursday it has agreed to be acquired by U.S. ride-hailing giant Uber in a 12.7 billion euro ($14.6 billion) deal after months of speculation, which opens the door to the American firm making the global takeout giant and further consolidating its grip in the field.
The acquisition advances the U.S. ride-hailing firm's efforts to build a global food-delivery business as it faces intensifying competition from Just Eat, owned by Dutch group Prosus, and U.S. rival DoorDash, which has also been expanding aggressively.
"Combination is designed to accelerate innovation and expand the range, value and convenience of services for customers, vendors and riders," the German company said in the statement.
Founded in 2011, Delivery Hero currently operates in over 60 markets and is one of the world's biggest food delivery groups.
It has also expanded beyond its traditional food business to "quick commerce," delivering small packages to customers.
Uber is offering 41.50 euros per share for Delivery Hero, valuing the deal at 12.7 billion euros. Delivery Hero's shares were down 0.5% in Frankfurt after the announcement, trading at 37.9 euros.
"Uber's global mobility and delivery platform and our shared commitment to innovation make this the right partnership to build on Delivery Hero's strengths in local food delivery and quick commerce," said Niklas Oestberg, CEO and co-founder of Delivery Hero.
Uber CEO Dara Khosrowshahi said a merger would "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 is acquiring Delivery Hero's businesses in 50 markets worldwide across Asia, Europe, Latin America and the Middle East.
A U.S. investment firm, SSW Partners, is acquiring the German group's operations in another 14 markets, where Uber and Delivery Hero compete, for around 1.4 billion euros.
Delivery Hero said its management recommends that shareholders accept the deal, and it is expected to be finalized in the second half of 2027.
The transaction, which is likely to face a complex regulatory process, would create a platform spanning 99 countries with a combined pro-forma gross merchandise value (GMV) of $236 billion in 2025, Delivery Hero said in a statement.
Prior to the merger, there were concerns about how the deal could potentially reshape the Turkish delivery market, where Delivery Hero owns Yemeksepeti, the oldest food delivery service provider in the country.
However, the statement and information shared by Uber on Thursday reveals that SSW Partners would be acquiring operations in a number of countries, including Türkiye.
Uber acquired the majority of the stake in another popular delivery service firm in Türkiye, Trendyol Go, last year.
Last month, the company also received the green light for the takeover of the delivery arm of Turkish company Getir from controlling shareholder Mubadala.