Uber Technologies Inc. has entered into a business combination agreement to acquire Delivery Hero SE for $14.8 billion, a move that will extend the world’s largest mobility and delivery platform to a total of 99 markets. The transaction, which represents an equity value of $14.8 billion before adjusting for Uber’s prior stake purchases, is expected to close in the second half of 2027. Uber will offer Delivery Hero shareholders cash consideration of €41.50 per share, a proposal that has been unanimously welcomed and supported by Delivery Hero's Management Board and Supervisory Board.

Transaction Structure and Asset Divestiture

The transaction involves a strategic divestiture of assets to manage regulatory and operational complexities. Delivery Hero has separately agreed to sell part of its business covering 14 markets to SSW Partners for approximately $1.6 billion. These markets, where Uber Eats and Delivery Hero already overlap, include operations in Austria, Czechia, Norway, Sweden, Greece, Cyprus, Moldova, Poland, Portugal, Romania, Spain, Chile, Ecuador, and Türkiye. Uber will not acquire control over the businesses transferred to SSW Partners.

The following table outlines the division of businesses:

Strategic Rationale and Financial Impact

The combination is projected to generate combined pro-forma Gross Bookings of $236 billion in 2025. By bringing together Uber’s global technology platform with Delivery Hero’s strong local brands, the merged entity aims to offer consumers greater choice and a more seamless Uber One membership experience. The transaction nearly doubles the number of markets where Uber will offer both mobility and delivery services, from 34 to 58 markets.

Uber expects the transaction to be accretive to Non-GAAP EPS upon close, with high-single-digit percentage accretion by year three. The company anticipates that cross-platform users will generate roughly 3x the Gross Bookings and profits compared to single-product users. Uber CEO Dara Khosrowshahi stated that Delivery Hero is operating with a net take rate that is higher than Uber's and expressed confidence that margin increases will continue going forward.

Financing and Commitments

Uber will fund the takeover offer through existing cash on its balance sheet and new debt financing, having executed a committed bridge facility of approximately €14 billion. The transaction is structured to maintain Uber's strong investment grade credit rating, with gross leverage expected to remain below 2x. Uber has committed to invest €2 billion in Germany over the next 5 years and pledged to retain Delivery Hero’s headquarters and make no changes to its workforce in Berlin until at least 2029.

Regulatory Approvals and Shareholder Support

The takeover offer is subject to a minimum acceptance threshold of 50% plus one share of Delivery Hero's outstanding share capital. Prosus has irrevocably committed to tender their shares, which represents approximately 17% of shares outstanding, bringing Uber’s total economic interest to ~53%. Prior to the announcement, Uber held approximately 24.77% of Delivery Hero’s issued voting share capital directly and additional economic exposure of approximately 11.74% through equity derivatives. The offer document will be submitted to BaFin for approval and published in accordance with the German Securities Acquisition and Takeover Act (WpÜG).

TD Cowen analyst John Blackledge has reiterated a Buy rating on Uber Technologies and maintained a price target of $118. This reiteration provides investors with a continued benchmark for the stock, reflecting the firm's sustained confidence in the company's future performance potential relative to the broader market.

The Buy stance indicates that the stock is expected to deliver returns superior to the sector average over the rating period. This rating suggests confidence in Uber's operational strategy and its ability to navigate current market dynamics effectively.

The maintenance of the $118 price target follows a review of Uber's financial position and business trajectory. While specific drivers for the valuation were not detailed in the filing, the positive rating underscores a bullish thesis on the company's fundamental strengths.