According to informed sources, Uber (UBER.US) is exploring the possibility of a full acquisition of Germany's Delivery Hero. If the deal proceeds, it would help Uber better compete with DoorDash (DASH.US) outside the U.S. market. The ride-hailing giant disclosed this week that it has increased its stake in the Frankfurt-listed company. Sources indicate that Uber is working with professional advisors to plan further increases in its shareholding and is also communicating with other Delivery Hero shareholders regarding acquisition interest. Uber stated on Monday that through stock purchases and related financial instruments, its direct ownership has reached 19.5%, with an additional 5.6% in option rights. Sources revealed that Morgan Stanley assisted Uber in quickly increasing its stake using derivative instruments. Since the beginning of this year, Delivery Hero's stock on the Frankfurt exchange has risen nearly 50%, with a market capitalization of approximately €10.2 billion, equivalent to $11.8 billion. During Friday's U.S. trading session, Uber's stock fell by as much as 3%, hitting its lowest intraday level in over a month. Uber stated this week that it currently has no plans to increase its stake to 30% or more but will regularly evaluate its investments and may consider further increases if attractive opportunities arise. Sources noted that if Uber's stake reaches certain thresholds, it would first need to pass antitrust reviews. Discussions are ongoing, and there is no certainty that a deal will be finalized. Representatives for Uber and Morgan Stanley declined to comment, and Delivery Hero has not yet responded. Compilation data shows that among Delivery Hero's other major shareholders, Prosus NV holds about 16.8%, and Aspex Management holds 14.4%. According to regulatory filings disclosed on Friday, Morgan Stanley holds a total of 30% of the company's interests, most of which are held through equity swaps. Berenberg Bank analyst Wolfgang Specht noted in a report that after Uber's increased stake, the investment value logic for Delivery Hero has fundamentally changed, and the potential value of a full acquisition should now be considered in valuations. To strengthen its overseas market presence, Uber continues to pursue cross-border mergers and acquisitions, while its main domestic competitor, DoorDash, is also expanding internationally. Delivery Hero operates in over 60 countries, which could help Uber address gaps in the European market and compete with DoorDash's Wolt division, which focuses on Europe. Meanwhile, Berlin-based Delivery Hero, under pressure from investors, is conducting a strategic review and has been exploring ways to improve its financial and operational conditions. Under pressure from activist investor Aspex, CEO Niklas Östberg has decided to step down. Aspex had urged the company to sell assets or change management. Delivery Hero is not the only German company to face a potential acquirer rapidly increasing its stake through derivatives. UniCredit employed a similar approach, accumulating a significant minority stake before launching a full takeover bid for Commerzbank—a series of transactions also facilitated by Morgan Stanley. Additionally, the U.S. bank assisted Saudi Telecom Company in acquiring nearly 10% of Telefónica in 2023.