Uber has significantly increased its equity investment in German delivery giant Delivery Hero, raising its stake from 7% in April to 19.5%, alongside a 5.6% options position, making it the company's largest shareholder. The pace of this capital activity suggests Uber's interest in Delivery Hero was evident earlier. In April, Uber acquired a 4.5% stake from Prosus, then the single largest shareholder, for 2.7 billion euros (approximately $3.18 billion). This transaction occurred against a regulatory backdrop where Prosus, following its roughly 41 billion euro acquisition of Just Eat Takeaway.com, was required by the European Commission to substantially reduce its stake in Delivery Hero within 12 months. Uber's purchase coincided with this forced divestment window for Prosus. Subsequently, in May, Uber increased its stake to 19.5% through secondary market purchases and financial instrument arrangements. Based on current data, Uber's holding is valued at approximately 1.7 billion euros. Concurrently, Hong Kong-based activist investor Aspex Management also raised its stake to about 15% in May, positioning the two largest shareholders in Delivery Hero.
Delivery Hero, founded in 2011 and headquartered in Berlin, is one of the most globally extensive local delivery platforms, operating in about 65 countries across Asia, Europe, Latin America, the Middle East, and Africa, with brands including Foodpanda, Talabat, and PedidosYa. However, this globally positioned company is caught in a dual squeeze of operational struggles and capital pressure. For the 2025 fiscal year, Delivery Hero's segment revenue grew 23.1% year-over-year to about 14.8 billion euros, while its net loss narrowed only slightly. Following the full-year earnings release, its stock price plunged over 6% due to a significant slowdown in its core profit engine, the Middle East and North Africa region. Shares traded around 19 euros, down more than 85% from their peak above 130 euros in 2021.
Further instability stems from internal governance. After sustained pressure from Aspex Management, co-founder and CEO Niklas Östberg announced he will step down by March 31, 2027, with the supervisory board planning to identify a successor by the end of 2026. Faced with activist shareholder demands and persistent financial losses, Delivery Hero is in a critical governance transition period. For Uber, this may represent an opportune moment for capital involvement.
For Uber, increasing its stake in Delivery Hero is not an impulsive move but a key part of its global food delivery defense strategy. Uber currently trails DoorDash significantly in the U.S. domestic market, holding only a 25% share compared to DoorDash's dominant 67%. As DoorDash consolidates its strong position in the U.S. and accelerates global expansion—having acquired Finland's Wolt in 2021 for $8.1 billion and the UK's Deliveroo in 2025 for £2.9 billion, now covering over 40 markets—Uber is actively seeking international footholds. Delivery Hero's extensive coverage in about 65 countries and regions, particularly its deep operations in the Middle East, North Africa, and Asia, provides Uber with a strategic buffer against the DoorDash-Wolt-Deliveroo alliance.
However, Uber clarified in its announcement that it "currently has no intention to acquire 30% or more of the voting rights in Delivery Hero." Under German securities regulations, this statement indicates Uber will not seek a controlling stake in the near term. JPMorgan analyst Marcus Diebel noted that Uber's increased stake at least clearly signals recognition of Delivery Hero's strategic asset value while preserving optionality for potential future carve-outs.
The interplay of capital and governance in the global food delivery industry continues to accelerate. Delivery Hero stated it welcomes Uber's further investment and will continue focusing on improving operational efficiency and advancing its strategic review to create long-term value for all shareholders. As of the close in Frankfurt on May 18, Delivery Hero's stock rose 5.6%. The development has drawn attention from several investment banks, with JPMorgan maintaining an "Overweight" rating and a 28-euro price target, and UBS maintaining a "Buy" rating with a 32-euro price target.
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