Uber is reportedly considering buying all of Delivery Hero, based on a Bloomberg News report.
It comes as Uber considers full Delivery Hero takeover to take on DoorDash outside the US.
As reported, a “full takeover” would mean Uber acquiring complete ownership of Delivery Hero, rather than just a partial stake.
Uber (UBER $72.66 (-1.29%) appears to be considering upping its competition with DoorDash (DASH $162.62 (2.10%) outside the US, exploring a potential full takeover of Frankfurt-listed Delivery Hero, Bloomberg reports.
Earlier this week the US-based ride-hailing service disclosed a 19.5% stake in the food delivery company, but now that could go higher.
The $11.8 billion German company could be particularly vulnerable to a takeover right now, with its CEO having recently stepped down following pressure from activist investors to sell off assets.
A full acquisition would give Uber a massive foothold in over 60 countries to combat DoorDash’s European-focused Wolt unit.
Uber has been involved in a lot of deal-making of late, mostly in the autonomous vehicle space, where it now has more than 30 partnerships globally.
Uber extended its losses on the news and is currently down around 1.7%.
The idea is still in the early stages, so no agreement has been reached yet, and discussions may not result in a deal.
If it were to happen, it would significantly expand Uber’s presence in the food delivery market, especially in Europe, where Delivery Hero operates a large network of delivery services.
Overall, the report suggests a possible major consolidation move in the global food delivery industry, but it remains speculative at this point.
