Uber Expands African Delivery Footprint in $16.9B Deal

Uber is significantly bolstering its presence across Africa by acquiring the regional delivery operations of Glovo and Talabat. This strategic move is part of a larger, multi-billion dollar transaction where Uber is set to absorb key assets from Delivery Hero, a global food delivery giant. The deal, valued at approximately €14.8 billion ($16.9 billion), positions Uber to capture a larger share of the continent's rapidly expanding on-demand delivery market.

To navigate regulatory approvals, particularly in markets where both companies currently operate, Delivery Hero simultaneously agreed to divest 14 of its businesses to investment firm SSW Partners for around $1.6 billion. This carve-out allows Uber to secure the coveted African operations, encompassing Glovo's footprint in Côte d’Ivoire, Kenya, Morocco, Nigeria, Tunisia, and Uganda, alongside Talabat's substantial presence in Egypt. Meanwhile, SSW Partners will manage the divested European and other international assets, including brands like Yemeksepeti and foodora, with plans to seek strategic buyers.

This acquisition nearly doubles the number of markets where Uber offers both ride-hailing and delivery services, a core component of its integrated platform strategy. Uber CEO Dara Khosrowshahi highlighted the opportunity to extend reliable and affordable delivery solutions to millions more consumers in dynamic African economies. The acquired businesses provide access to a young, growing consumer base in urban centers characterized by increasing smartphone penetration and a rising middle class, key drivers for the food and grocery delivery sector.

The transaction sees Uber increasing its economic interest in Delivery Hero, building on its existing stake. Amsterdam-listed tech investor Prosus, a significant shareholder, has committed to tendering its approximately 17% holding, potentially bringing Uber's total economic exposure to around 53%. The offer is contingent on achieving a minimum acceptance threshold of 50% plus one share, alongside customary regulatory clearances.

Financing for the acquisition is secured through approximately €14 billion in bridge loans from major financial institutions including Morgan Stanley, Bank of America, and Deutsche Bank. Uber aims to maintain its investment-grade credit rating, projecting gross leverage below two times and anticipating high-single-digit percentage accretion to earnings per share by the third year post-completion. The deal is anticipated to close in the latter half of 2027.

Industry observers view this move as a significant consolidation play within the global food delivery sector, where achieving profitability often hinges on substantial market share. Africa's delivery market, still relatively fragmented, presents a compelling opportunity for established global players like Uber, equipped with the necessary capital and technological infrastructure to scale operations effectively. This expansion places Uber in more direct competition with rivals such as Bolt Food and a host of local and informal delivery services across the continent.