Uber's €11.5B bid for Delivery Hero rejected - what this means for UAE food delivery

Uber is weighing a higher takeover bid for food delivery group Delivery Hero after its initial €11.5 billion (Dhs 45.8 billion) offer was rebuffed by a major shareholder. According to the Financial Times, the American mobility giant had offered €38 per share for the Berlin-based company, but now faces the prospect of raising its bid to secure the deal.

What happened with Uber's takeover bid?

Uber's initial approach valued Delivery Hero at more than €11.5 billion based on a €38 per share offer. Delivery Hero operates brands including Talabat across the Middle East and foodpanda in Asia. A major Delivery Hero shareholder rejected the opening offer, prompting Uber to reconsider its approach.

Following the rejection, Uber is evaluating whether to submit a higher bid, though no specific figures for a revised offer have been disclosed.

What the merger could mean for the mobility sector

A successful Uber-Delivery Hero combination would bring together two large players across ride-hailing, food delivery, and quick commerce, with operations spanning multiple regions.

Both companies face pressure from rising costs, regulatory scrutiny, and competition. Combining operations could allow them to share technology platforms and customer bases.

For Uber, acquiring Delivery Hero would expand its international footprint, especially in Asia and the Middle East, where Delivery Hero operates brands including foodpanda and Talabat.

What this means for the UAE market

The potential merger could have implications for UAE consumers and businesses. Delivery Hero's Talabat is a major player in the Emirates' food delivery market, competing directly with Uber Eats alongside regional rivals like Careem Food. A combined Uber-Talabat operation could reshape pricing strategies, delivery options, and restaurant partnerships across the country.

Uber already operates ride-hailing services in the UAE and has expanded into autonomous vehicles in Abu Dhabi. Adding Talabat's local market knowledge and restaurant relationships would create a comprehensive mobility and delivery platform.

Quick commerce and grocery delivery are areas where both companies operate. already emerging in the UAE.

The road ahead for negotiations

The size of any revised offer has not been reported. Delivery Hero holds positions across several markets beyond traditional food delivery.

Regulatory approval represents another hurdle. A deal of this magnitude would attract scrutiny from competition authorities globally, especially in markets where both companies operate. The companies would need to demonstrate that the merger benefits consumers rather than creating anti-competitive conditions.

Deal details

Initial bid: €38 per share, valuing Delivery Hero at €11.5 billion (Dhs 45.8 billion)
Status: Rejected by major shareholder
Next steps: Uber weighing higher offer
Potential impact: Would create one of the world's largest mobility and delivery platforms

Frequently Asked Questions

What is Uber's offer for Delivery Hero?

Uber initially offered €38 per share, valuing Delivery Hero at over €11.5 billion (Dhs 45.8 billion). This bid was rejected by a major shareholder, prompting Uber to consider a higher offer.

Why was the bid rebuffed?

A major Delivery Hero shareholder rejected Uber's initial €38 per share offer. The shareholder's specific reasons have not been disclosed.

What would an Uber-Delivery Hero merger mean for the UAE?

The merger could consolidate food delivery and mobility services in the UAE, potentially affecting competition, pricing, and service options. It would combine Uber's ride-hailing presence with Talabat's strong local food delivery network.

Which Delivery Hero brands operate in the UAE?

Delivery Hero operates Talabat in the UAE and broader Middle East region. Talabat is one of the leading food delivery platforms in the Emirates.

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