A possible EUR12.5 billion takeover would reshape food delivery, but regulators are likely to focus on overlapping national markets and platform power.
Uber is nearing a possible EUR12.5 billion takeover of Germany’s Delivery Hero, a deal that would accelerate consolidation in food delivery and raise competition questions across several European and international markets.
The proposed transaction, reported as nearing agreement, would give Uber a far larger global delivery footprint and deepen its exposure to markets where Delivery Hero owns brands such as Talabat, HungerStation, Baemin and Glovo. Delivery Hero has confirmed advanced negotiations, while the reported valuation suggests a substantial premium to earlier approaches.
The strategic logic is straightforward. Food delivery remains a scale business. Platforms need restaurants, customers, couriers, advertising tools and logistics density. Larger networks can spread technology costs and marketing spending across more orders. But that same logic is why regulators examine such deals carefully: scale can become market power.
The European competition question will depend on overlaps. Delivery Hero has already exited some markets and operates through different brands, while Uber Eats has its own national footprint. Regulators will ask where the combined group would control too much restaurant access, courier capacity or consumer demand. They may also examine whether divestments are needed in countries where both companies are significant.
The deal would come after several years of consolidation. Food-delivery platforms have struggled with thin margins, high marketing costs and volatile courier regulation. Investors have pushed companies to reduce losses and focus on profitable markets. Buying scale can be easier than building it, but it can also reduce competitive pressure on fees charged to restaurants and prices paid by consumers.
Restaurants may be the most exposed commercial group. Delivery platforms offer access to customers, but commissions can be high. If consolidation reduces the number of major platforms in a market, restaurants may have less bargaining power. Couriers may also face changes if platform integration alters incentives, route allocation or subcontracting models.
Consumers could benefit from broader coverage and better logistics, but they could also face higher delivery fees or fewer promotions once competition eases. Regulators increasingly recognise that platform markets are multi-sided: a deal can affect restaurants, couriers, advertisers and consumers at the same time.
Delivery Hero’s ownership of Glovo is also relevant for European scrutiny. The Commission has previously examined food-delivery competition and labour-market issues in the sector. A large Uber deal would be assessed against that history, especially in countries where both brands or related services have strong positions.
The transaction would also have a geopolitical business dimension. Uber would gain stronger exposure to the Middle East and Asia through Delivery Hero’s assets. That could make the deal more global than a simple European consolidation story, but EU regulators would still focus on effects inside the Single Market.
The key question is whether Uber can structure the deal to satisfy regulators without losing the scale benefits that make Delivery Hero attractive. Divestments, behavioural commitments or brand separations could reduce competition concerns, but each concession would change the economics of the transaction. A takeover may therefore be possible, but not necessarily simple.
