Key Takeaways
- Uber will acquire Delivery Hero for €13 billion to expand its global super app.
- Uber expects cross-selling to significantly increase customer spending and operating profit.
- Analysts say success depends on integrating services and delivering promised revenue synergies.
Uber has agreed to acquire German food delivery company Delivery Hero for €13 billion, aiming to expand its global “super app” strategy by combining ride-hailing and food delivery services across more than 60 countries.
The Delivery Hero acquisition gives Uber access to millions of Delivery Hero customers in markets where it already operates ride-hailing services but has limited or no food delivery business. The deal also includes a separate $1.6 billion transaction to sell 14 Delivery Hero businesses, reducing the debt Uber will assume. The deal follows a lengthy investor-driven strategic review at Delivery Hero that had pushed the company to weigh asset sales before Uber’s offer emerged.
Uber targets cross-selling opportunities
Uber said it expects the Delivery Hero acquisition to increase Delivery Hero’s operating profit by about $1.2 billion through a mix of cost savings and higher revenue. While some gains are expected from reducing overlapping technology and administrative expenses, the company says much of the value will come from encouraging customers to use multiple services through one platform.
According to Uber, customers who use more than one service on its platform generate about three times the gross bookings and profit compared with users who rely on a single service. The company believes adding food delivery customers in regions such as South Korea and the Middle East will strengthen customer engagement and increase spending across its platform.
Industry analysts note that cross-selling has long been a goal for technology companies seeking to build broader consumer ecosystems. However, revenue synergies from large acquisitions have often failed to meet expectations, making Uber’s projections a key area for investor scrutiny.
Analysts weigh risks and potential benefits
Despite the strategic rationale, the Delivery Hero acquisition comes at a high cost. Delivery Hero remains loss-making, and estimates based on 2027 earnings forecasts compiled by S&P Capital IQ suggest Uber could initially earn a return of roughly 5% on the investment before accounting for any additional business gains.
Analysts say the success of the Delivery Hero acquisition will depend on whether Uber can convince customers to use a single app for transportation and food delivery. That model has been widely adopted in parts of Asia but has seen limited success in Europe and the United States, where individual services face strong competition.
Financial Times analysis said the deal may represent one of the few acquisitions where revenue synergies appear more credible than in many traditional mergers. The report noted that expanding customer activity across multiple services could create long-term value if Uber successfully integrates Delivery Hero’s operations.
The Delivery Hero acquisition also reflects broader consolidation across consumer technology companies as businesses seek larger customer ecosystems and higher engagement. Companies, including Southeast Asia’s Grab and China’s WeChat, have demonstrated how multi-service platforms can encourage frequent user activity, although replicating that success outside Asia has proven challenging.
Uber has not indicated when the transaction is expected to close, though the reports say the tie-up values Delivery Hero at roughly $14.8 billion. The deal remains subject to customary regulatory approvals and other closing conditions.
