Uber-Delivery Hero Deal Faces EU Antitrust Review

The European Commission's competition authority is reportedly examining the proposed acquisition of Delivery Hero by Uber, a transaction valued at approximately $14.8 billion. This intensified regulatory interest stems from the complex structure of the deal, which involves Delivery Hero divesting 14 of its national operations to financial investor SSW Partners for around €1.4 billion. The core of the Commission's concern lies in how to assess these two intertwined transactions – Uber's purchase of the remaining Delivery Hero entity and SSW's acquisition of the divested markets – potentially as a single, comprehensive package rather than separate events.

Industry participants and political figures are urging Brussels to conduct a thorough review, highlighting the potential market implications. Andreas Schwab, a prominent Member of the European Parliament focused on competition policy, has publicly advocated for a careful evaluation. This scrutiny is particularly relevant given the significant market overlap that would have occurred had Uber acquired Delivery Hero outright, a scenario the current deal structure aims to circumvent.

A key element drawing regulatory attention is the financing arrangement for the SSW Partners transaction. Reports indicate that Uber is providing the majority of the funds, approximately €1.4 billion, to SSW Partners to facilitate its purchase of the 14 country markets. This financial linkage raises questions about whether SSW Partners is acting as an independent buyer or as an intermediary for Uber, potentially allowing the ride-sharing giant to indirectly control these divested assets.

SSW Partners, described as a relatively small investment firm with limited assets under management, intends to find new, long-term owners for these markets. However, the substantial financial backing from Uber complicates the perception of independent ownership. The strategy behind this deal structure appears to be an attempt to avoid triggering significant antitrust objections in Europe by separating the direct market overlaps. Yet, the interconnectedness of the financing is prompting regulators to consider a unified assessment.

The broader implications for the food delivery sector are substantial. The combined entity, should the acquisition proceed, would significantly consolidate market power in various regions. For instance, in Spain, where Glovo (a Delivery Hero subsidiary) holds a dominant 50-60% market share and Uber has 20-30%, the regulatory hurdles are already considerable. The deal requires approvals not only from the European Commission but also from authorities in several other jurisdictions, including South Korea, the Middle East, and Latin America, alongside national reviews in countries like Austria, Spain, and Poland.

Uber's offer for Delivery Hero, which includes a €700 million break fee if regulators block the deal, is expected to close in the latter half of 2027. The 14 markets being sold to SSW Partners collectively represent an estimated $11 billion in gross merchandise volume. The European Commission's decision on whether to review the transactions jointly or separately will be pivotal in shaping the future competitive dynamics of the online food delivery industry across Europe and beyond.