Uber Boosts Delivery Hero Stake, Raising Prospects for Full Acquisition

Uber Technologies (NYSE:UBER) disclosed that its ownership in Delivery Hero (XETRA:DHER) has risen to about 25% on a straight‑share basis – or 37% when convertible instruments are included – up from the prior 19.5%. The increment was revealed in a voting‑rights filing and aligns with reports that Uber submitted an €10 billion, $11.6 billion offer (approximately €33 per share) over the weekend to acquire the balance of Delivery Hero’s equity.

The stake build‑up has been incremental over the last two years. It began with a modest 2.5% position linked to Uber’s proposed acquisition of Foodpanda Taiwan, then grew through purchases from Prosus in April 2026 after EU antitrust divestments forced Prosus to sell part of its holding. A mid‑May transaction lifted the stake to 19.5%, and the latest step brings Uber within striking distance of a controlling interest.

From a strategic standpoint, a full merger would dramatically enlarge Uber’s delivery network. Delivery Hero operates in 64 countries under eleven brands, covering markets where Uber’s own Eats platform is either absent or has limited penetration, especially across Asia, the Middle East and North Africa. Adding those territories could give Uber access to roughly 46 new markets and deepen its Uber One subscription ecosystem through cross‑selling opportunities.

Regulatory risk remains a key variable. While overlap between the two firms in Europe appears modest – potentially softening antitrust scrutiny compared with a broader competitive clash – the combined entity would still command significant scale, prompting careful review by competition authorities in multiple jurisdictions. Investors should monitor any concessions or divestitures that may be required to clear a deal.

Financially, the proposed price tag implies a valuation of about $14 billion for Delivery Hero on a pro‑forma basis, roughly 12 times FY27 projected EV/EBITDA and modestly above its estimated FY26 free cash flow of $11.6 billion. By comparison, Delivery Hero currently trades at a discount to Uber when forward multiples are aligned, suggesting potential upside for shareholders if the transaction proceeds.

However, analysts caution that the acquisition could strain Uber’s balance sheet and limit flexibility for other capital‑return initiatives. Funding the deal may require monetising minority stakes in portfolio companies such as Didi, Grab, Aurora and Lime, assets that together represent several billion dollars of value. Moreover, allocating substantial cash to the purchase could reduce funds available for share repurchases or organic growth projects, a concern given Uber’s recent underperformance relative to the S&P 500 (down 13% year‑to‑date) and its low RSI indicating oversold conditions.

In the short term, market reaction has been muted. Uber shares edged up 1.2% to $72 after the news, while the stock remains well below its 52‑week high of $101.99 and close to its 52‑week low of $68.46. The consensus price target of $102.9 represents a roughly 45% upside from current levels, but that projection assumes successful execution of strategic initiatives like this potential acquisition.

Investors should weigh the upside of geographic expansion and synergies against the downside of higher leverage, possible regulatory delays, and the opportunity cost of diverting cash from other growth avenues. The deal’s ultimate impact will hinge on how efficiently Uber can integrate Delivery Hero’s operations and whether the combined platform can deliver incremental earnings that justify the premium paid.