Uber Expands Delivery Hero Stake in $318 Million Regulatory-Driven Deal

Uber has agreed to purchase an additional 4.5% stake in German food delivery platform Delivery Hero from its largest shareholder, Prosus. The transaction is valued at approximately 270 million euros ($318 million), with Uber paying 20 euros per share. This divestment is a strategic necessity for Prosus, which is seeking approval from the European Commission for its 4.1 billion euro acquisition of Just Eat Takeaway.com. To clear antitrust hurdles, regulators required Prosus to significantly reduce its existing holdings in Delivery Hero to prevent excessive market concentration. While the 20 euro price point sat below Delivery Hero's most recent closing price, Prosus noted that the figure represents a 22% premium over the one-month average share price. Following this sale, Prosus's ownership in Delivery Hero has decreased from approximately 27% to 21%. The deal coincides with a potential pivot in EU competition policy. European Competition Commissioner Teresa Ribera has indicated that the bloc may relax merger rules to prioritize innovation and resilience, aiming to help European firms remain competitive on a global scale. This move builds upon Uber's previous investment in 2024, when the company purchased $300 million of newly issued shares in the German firm. The increased stake further aligns Uber with the European delivery landscape as regulators reconsider the balance between competition and global scale.