Uber Stock Slides as Delivery Hero Takeover Talks Emerge

TLDR

• Uber is exploring a full takeover of European food delivery company Delivery Hero, per Bloomberg
• Uber confirmed this week it holds a 19.5% stake in Delivery Hero, plus 5.6% in options
• Morgan Stanley helped Uber build its position quickly using derivatives
• Uber stock fell around 1.9% on the news; DoorDash gained 1.9%
• Delivery Hero has risen nearly 110% in Frankfurt over the past six months, valuing it at ~€10.2 billion

Uber is in early-stage talks about a full takeover of Delivery Hero, the Frankfurt-listed food delivery giant, according to a Bloomberg report published Friday.

The move is aimed at helping Uber better compete with DoorDash outside the United States.

Uber stock dropped about 1.9% following the report. DoorDash, seen as a key rival in the international delivery space, gained 1.9% on the same news.

Uber Technologies, Inc., UBER

Earlier this week, Uber disclosed it had rapidly built up a 19.5% stake in Delivery Hero, along with an additional 5.6% in options. The position was assembled with help from investment bank Morgan Stanley, which used derivatives to move quickly.

Uber has also been speaking with other Delivery Hero investors about its potential interest in a deal, according to Bloomberg’s sources.

What Uber Has Said Publicly

In a formal filing with German regulators, Uber stated it currently has no intention to raise its stake to 30% or more — a threshold that would typically trigger a mandatory takeover offer under European rules.

The company did note, however, that it periodically reviews its investments and could buy more equity if the right opportunity comes along.

Uber also said it does not plan to change Delivery Hero’s capital structure or influence board appointments beyond standard voting rights.

The company may still need antitrust approval before crossing certain ownership thresholds in Europe.

Where Delivery Hero Stands

Delivery Hero stock has climbed nearly 110% in Frankfurt trading over the past six months, giving it a market value of roughly €10.2 billion.

The company operates food and grocery delivery services across multiple markets outside the US, making it a strategic asset for any platform looking to grow internationally.

Working with financial advisers, Uber is actively studying ways to increase its holding further, Bloomberg said.

Deliberations are ongoing, and sources cautioned there is no certainty the talks will result in a final deal.

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