Uber-Delivery Hero Deal Faces EU Antitrust Review

Brussels is gearing up to examine the intricate acquisition of Delivery Hero by Uber, a move that could reshape the European food delivery market. The European Commission's Directorate-General for Competition (DG COMP) is reportedly assessing the complex transaction, which involves Uber acquiring Delivery Hero and simultaneously divesting 14 of Delivery Hero's national operations to investment firm SSW Partners. This parallel structure has raised questions about whether the deals will be reviewed independently or as a single, integrated transaction.

At the heart of the regulatory concern is the financing arrangement for the divestiture. Reports indicate that Uber is providing a substantial portion of the capital, approximately $1.4 billion, to SSW Partners to facilitate its purchase of the 14 Delivery Hero markets. This financial linkage has prompted industry participants and policymakers, including prominent EU Parliamentarian Andreas Schwab, to urge a thorough investigation into the potential competitive implications of the entire arrangement.

The strategic rationale behind this multi-pronged approach appears to be an attempt to circumvent antitrust hurdles. A direct acquisition of Delivery Hero by Uber would have created significant market overlaps in numerous European countries, potentially triggering severe regulatory objections. By selling off these overlapping territories to a third party, Delivery Hero and Uber aim to present a cleaner picture to competition authorities. However, the substantial financial backing from Uber to SSW Partners complicates this narrative, leading to calls for a holistic review.

SSW Partners, described as a relatively small investment firm managing around $646 million in assets, positions itself as an interim owner seeking long-term buyers for the divested assets. The company, reportedly with a lean team of five professionals, has proactively approached the Commission for a review of its acquisition, even though the deal value falls below typical EU merger control thresholds. This move suggests an effort to streamline regulatory approvals and avoid fragmented national reviews across the 14 countries involved.

The broader implications for the food delivery sector are significant. The combined entity would command a formidable presence across Europe. Delivery Hero's divested markets alone represent an estimated $11 billion in gross order volume. In particularly competitive markets like Spain, where Delivery Hero's Glovo holds a dominant 50-60% share and Uber an estimated 20-30%, the regulatory scrutiny is expected to be intense. Beyond the EU, the deal also requires approvals in jurisdictions such as South Korea, the Middle East, and Latin America.

Uber's offer for Delivery Hero values the Berlin-based company at approximately $14.8 billion, with the US ride-sharing giant already holding a significant stake. The transaction is anticipated to conclude in the latter half of 2027, with a substantial penalty of €700 million payable if the deal fails due to regulatory intervention. The ongoing assessment by the European Commission will be a critical determinant of the future competitive dynamics within the rapidly evolving online food delivery industry.