Uber announced the acquisition of Delivery Hero on July 16 (local time) for €41.5 per share, valuing the company at $14.8 billion. The deal brings Baemin, Korea's leading food delivery platform, under Uber's control as a granddaughter company alongside Delivery Hero's operations in 50 global markets. Uber re-enters the Korean market seven years after shutting down Uber Eats in 2019. The acquisition provides Uber access to platforms including Talabat (Middle East), PedidosYa (Latin America), HungerStation (Saudi Arabia), and Foodpanda (Asia) in a single transaction. Delivery Hero faced liquidity pressure from maturing convertible bonds and declining stock prices, making the all-cash offer attractive to shareholders including largest stakeholder Prosus and activist fund Aspex.
Uber Acquires Delivery Hero for $14.8 Billion
Uber and Delivery Hero signed a business combination agreement on July 16 (local time) with Uber offering a tender offer at €41.5 per share. The additional acquisition cost totals $13.7 billion (approximately ₩20.3 trillion), accounting for Uber's existing stake. The enterprise value of Delivery Hero based on 100% equity stands at $14.8 billion (approximately ₩21.9 trillion). Uber previously accumulated a 36.83% stake in Delivery Hero starting in May, becoming the largest shareholder before announcing the full acquisition.
Deal Includes Baemin and 50 Global Markets
The acquisition grants Uber ownership of Baemin, which Delivery Hero controls, making it Uber's granddaughter company. Delivery Hero had been pursuing a standalone sale of Baemin with an estimated valuation of ₩8 trillion. JP Morgan served as the sale advisor with multiple strategic investors conducting due diligence. The package deal provides Uber with Delivery Hero's platforms across 50 markets: Talabat (Middle East's number one), PedidosYa (Latin America's number one), HungerStation (Saudi Arabia), and Foodpanda (Asia).
Delivery Hero Shareholders Accept All-Cash Offer
Delivery Hero faced liquidity challenges from aggressive expansion and maturing convertible bonds issued during low-interest periods. The company's stock price declined significantly while activist fund Aspex, the second-largest shareholder, pressured largest shareholder Prosus for an exit. The all-cash tender offer at €41.5 per share provided immediate liquidity to shareholders under financial pressure.
Uber Plans Second Half Next Year Deal Closing Pending Regulatory Approval
Uber stated the transaction will undergo antitrust review by regulatory authorities including Korea's Fair Trade Commission. The company targets deal closing in the second half of next year. Uber emphasized Korea as a core market and committed to continued investment in Baemin's technological capabilities and user service experience.
Baemin Holds 88.3% Korea Market Share with Coupang Eats
According to Wiseapp Retail, Baemin and Coupang Eats currently hold a combined 88.3% of Korea's food delivery market. Coupang Eats has been rapidly increasing market share through free delivery membership benefits. In the taxi-hailing sector, Kakao Mobility's Kakao T dominates with over 90% market share while Uber Taxi maintains single-digit share. Industry observers note potential market impact if Uber's subscription model "Uber One" integrates with Baemin services.
FAQ
What did Uber acquire on July 16?
Uber announced the acquisition of Delivery Hero on July 16 (local time) for €41.5 per share, with an enterprise value of $14.8 billion. The deal includes Delivery Hero's platforms across 50 global markets including Baemin, Talabat, PedidosYa, HungerStation, and Foodpanda.
When does Uber plan to complete the Delivery Hero acquisition?
Uber targets deal closing in the second half of next year pending regulatory approval from authorities including Korea's Fair Trade Commission and other jurisdictions where Delivery Hero operates.
What is Baemin's current market position in Korea?
Baemin and Coupang Eats hold a combined 88.3% of Korea's food delivery market according to Wiseapp Retail data. Uber exited the Korean market in 2019 when it shut down Uber Eats operations.
