Uber Technologies Inc is examining potential paths toward a complete acquisition of Delivery Hero AG, according to people familiar with the matter. The initiative is being framed internally as a way for Uber to strengthen its position against DoorDash Inc beyond the United States.
The interest in Delivery Hero follows a rapid expansion of Uber's stake in the Frankfurt-listed food delivery group earlier this week. Working with financial advisers, Uber is actively assessing how it might further increase its ownership, the people said. The company has also engaged with other investors in Delivery Hero to gauge interest and the feasibility of a broader transaction.
Uber confirmed this week that its position in Delivery Hero now stands at a 19.5% stake after it purchased additional shares and instruments. The company also holds an extra 5.6% through options. Sources said investment bank Morgan Stanley assisted Uber in building this position quickly, using derivatives as part of the strategy.
Recent regulatory filings indicate that the capital used to secure the voting rights tied to the stake comes entirely from Uber's own funds. In a formal group notification submitted to German regulators, Uber stated it currently has no intention of raising its stake to 30% or more. At the same time, the notice said Uber periodically reviews investments and could increase its equity holdings if an opportunity it deems attractive presents itself.
The regulatory notification also clarified that Uber does not intend to alter Delivery Hero's capital structure or to exert influence over board appointments beyond ordinary voting rights. The company, however, acknowledged that European ownership thresholds may trigger the need for antitrust approval if crossed, and that such regulatory processes would be required before certain ownership levels could be attained.
People familiar with the discussions cautioned that deliberations remain ongoing and there is no certainty they will culminate in a completed transaction. Market pricing has already reacted to the possibility: Delivery Hero shares have climbed nearly 110% in Frankfurt trading over the past six months, valuing the company at roughly c10.2 billion. Following reports of Uber's takeover considerations, Uber's stock slipped 1.9%, while DoorDash shares rose 1.9%.
What the development could mean
The strategic consideration to pursue Delivery Hero reflects an effort by Uber to broaden its food-delivery footprint in markets where DoorDash seeks growth. Uber's use of derivatives and options to assemble significant economic and voting exposure quickly demonstrates how financial instruments can be used to accelerate position-building without immediate outright equity purchases.
At the same time, the firm has signalled restraint publicly through its German regulatory filing by saying it has no current plan to cross the 30% ownership threshold and by stating it does not intend to interfere with corporate governance beyond standard voting practices.
Note: Discussions are reported to be ongoing and may not result in any definitive transaction. Regulatory review requirements in Europe are a potential constraint on any future escalation of ownership.