Delivery Hero, the German food delivery giant, saw its share price surge to €37.85 during trading on the Frankfurt exchange on May 25, reaching an 18-month high. This price not only significantly exceeded the indicative acquisition offer of €33 per share announced by Uber the previous Saturday, but even approached Uber's latest "improved" proposal of €38 per share. The market is sending a clear signal with real money: any offer below €40 per share is unlikely to open Delivery Hero's door.

As competitor DoorDash enters the fray, activist shareholders maintain pressure, and antitrust concerns loom, a multi-party game surrounding the restructuring of the global food delivery landscape is intensifying.

**The Bidding Game: From €33 to €40+** On May 23, Delivery Hero formally confirmed in a regulatory filing that Uber had submitted a preliminary acquisition proposal to all shareholders at €33 per share, valuing the entire company at approximately €10 billion. This price was even slightly below Delivery Hero's closing price of €33.59 on the previous Friday, meaning Uber's initial offer provided no premium over the prior session's close.

According to sources, Uber CEO Dara Khosrowshahi flew to Oslo, Norway earlier in the week to meet with Delivery Hero's supervisory board chairwoman, Kristin Skogen Lund, to present the €33 per share offer in person. The market's response was tepid.

Faced with this initial cool reception, Uber quickly escalated its offer. According to three sources, Uber recently presented a new bid of €38 per share to a major shareholder of Delivery Hero, valuing the deal at over €11.5 billion and representing a premium of about 15.3% over Delivery Hero's closing price the previous Friday. However, this improved offer was also rejected. Uber's board of directors held a meeting on Saturday to assess the acquisition's progress, and sources indicate the company is now "considering raising its offer again."

Delivery Hero's shareholders have shown rare unity in this game. Multiple investors reportedly stated clearly that they expect an acquisition price above €40 per share. At this price, Delivery Hero's enterprise value would reach approximately €13 billion.

Jefferies analyst Giles Thorne noted in a report that numerous stakeholders are still holding out for a price above €40 per share, stating, "Predicting the next move is extremely difficult, especially considering the 'significant antitrust issues' involved." Barclays analyst Andrew Ross provided a more aggressive assessment, suggesting Delivery Hero's "fair value is significantly above €40," achievable through either a full acquisition or a corporate breakup. Jefferies maintains a "Buy" rating on Delivery Hero with a target price of €42.50.

Delivery Hero's stock continued its rally on Monday, rising about 10% and marking its eleventh consecutive day of gains. The stock has surged approximately 89% over two weeks. Since the beginning of May, the share price has accumulated gains of over 80%, heading towards its largest monthly gain on record.

**DoorDash Enters the Fray: From "Solo Act" to "Duel"** If Uber's initial €33 offer revealed the acquirer's "stinginess," DoorDash's forceful entry has completely changed the game. According to media reports on May 23, both Uber and DoorDash have separately engaged in exploratory talks with Delivery Hero's investors regarding a potential acquisition. DoorDash has not yet purchased any Delivery Hero shares, but its intent is clear—primarily targeting Delivery Hero's Middle Eastern business, including the Talabat and HungerStation platforms.

DoorDash's appearance gives Delivery Hero's board more options. The board is reportedly weighing two scenarios: selling the entire company or spinning off its Middle Eastern and South Korean operations.

**Global Food Delivery Competitive Landscape** The backdrop of this acquisition battle is the deep integration logic of the global food delivery industry entering an era of "stock game" competition. Analysts widely believe the primary driver behind Uber's aggressive move is the relentless pressure from its biggest competitor, DoorDash. Currently, DoorDash holds a 67% share of the U.S. domestic food delivery market, far surpassing Uber's 25%. More alarmingly for Uber, DoorDash is extending its reach to over 40 international markets through acquisitions like Finland's Wolt and the UK's Deliveroo, establishing a solid bridgehead in Europe.

Delivery Hero's value lies precisely in its unparalleled global reach. The Berlin-based platform operates in approximately 65 countries and regions across Asia, Europe, Latin America, the Middle East, and North Africa, with a brand portfolio including Foodpanda, Talabat, and PedidosYa.

Jefferies noted in its analysis, "Rumors of Uber and DoorDash acquiring and breaking up Delivery Hero highlight the strategic value of these assets and expose the complexity of such acquisitions." In fact, Uber directly competes with Delivery Hero in 22 global markets, nine of which are in Europe; DoorDash overlaps with Delivery Hero in 18 markets, including 14 in Europe. Jefferies suggested that a "joint bid by the two suitors, splitting the businesses to meet their respective needs, might circumvent some antitrust hurdles, but the transaction's complexity and risk of failure remain extremely high."

**What Would Acquiring Delivery Hero Bring Uber?** The European food delivery industry is experiencing an unprecedented wave of consolidation. Europe's online food delivery market is projected to grow at a compound annual growth rate of 8% from 2025 to 2030. Although growth has slowed compared to the pandemic period, the market size continues to expand. As the global food delivery industry enters an era of "stock game" competition post-dividend, industry consolidation has become an inevitable trend.

**Strategic Defense Against DoorDash's Global Expansion** Analysts widely agree that the primary driver behind Uber's aggressive move is the relentless pressure from its biggest competitor, DoorDash. With DoorDash holding a dominant 67% share in the U.S. domestic market compared to Uber's 25%, and expanding its footprint to over 40 international markets through acquisitions, Uber faces a significant strategic challenge. In contrast, Uber's international delivery footprint has notable gaps, particularly lacking a large-scale local operational network in continental Europe.

Delivery Hero's value lies in its unparalleled global coverage, operating in about 65 countries and regions across multiple continents. Its growth in the Middle East and North Africa markets is particularly strong, with Gross Merchandise Value (GMV) increasing 16.1% year-over-year in the first quarter.

Berenberg analyst Wolfgang Specht noted that if Uber completes the acquisition, it would directly gain a "global food delivery network with far greater coverage than the DoorDash alliance," thereby forming a third pole in the global market alongside DoorDash and Meituan. The strategic positioning value far outweighs mere financial investment.

**Addressing European Weaknesses and Gaining Immediately Profitable Assets** From a business synergy perspective, the most direct benefit Delivery Hero offers Uber is addressing its European market weakness. While DoorDash holds advantageous positions in many European countries through Wolt, Uber's food delivery business in continental Europe is relatively weak. Acquiring Delivery Hero would instantly provide Uber with mature operational systems, local merchant relationships, and delivery networks in Europe, the Middle East, North Africa, and parts of Asia, avoiding the high costs and time required to build from scratch.

The financial synergies are equally attractive. Referring to Uber's prior acquisition of Delivery Hero's Taiwan foodpanda business for $1.25 billion, which is expected to contribute at least $150 million in adjusted core profit annually to Uber, the addition of Delivery Hero's overall business would significantly expand the scale effect of Uber's food delivery operations.

Furthermore, among Delivery Hero's asset portfolio, the South Korean food delivery platform Baemin is undoubtedly the core asset attracting the most attention from suitors. Delivery Hero has initiated a strategic review of its Korean business Baemin, including considering a full sale. Bernstein Research analyst Robin Zhu maintains a "Buy" rating on Delivery Hero with a target price of €28 (excluding acquisition premium). Zhu noted that Baemin is transitioning from a subsidy-driven loss-making business to a "platform with disciplined monetization capabilities"—the South Korean food delivery market is stabilizing, quick commerce offers additional growth potential, and government subsidy policies are particularly favorable for Baemin. Analysts from UBS and Citi have both given positive assessments of the potential sale valuation of Baemin. Citi analyst Monique Pollard stated that Uber's significant stake increase "further reinforces the focus on a potential Baemin sale."

**Antitrust: The Unavoidable Sword of Damocles** On the equity ownership front, Uber and Morgan Stanley have woven an intricate network of interests. As of May 18, Uber directly holds 19.5% of Delivery Hero's issued share capital and simultaneously holds call option rights for an additional 5.6%, bringing its total interest to 25.1%, making it the largest shareholder. Sources revealed that Morgan Stanley assisted Uber in rapidly increasing its stake through derivative instruments.

Simultaneously, Morgan Stanley—reportedly assisting Uber in quickly building its stake through derivatives—disclosed in a regulatory filing on May 22 that the bank holds approximately 30% of the interests in Delivery Hero, the vast majority held indirectly through financial instruments like equity swaps. Under German securities law, once a shareholder's stake exceeds 30%, it triggers a mandatory takeover offer obligation.

Sources indicate that Uber plans to increase its indirect stake above 30% by acquiring related derivatives. This strategy can signal clear acquisition intent while preserving operational space for a formal offer—similar to the strategy used by Italy's UniCredit in its acquisition of Commerzbank.

Barclays warned in a report that any deal would "raise serious monopoly issues, especially in the EU," adding a layer of uncertainty to the completion of the takeover offer. A larger regulatory gray area exists: if DoorDash and Uber were to jointly bid, each splitting different regional businesses of Delivery Hero, such an arrangement, while commercially logical, might be viewed as a "market division" coordination in antitrust reviews. It is reported that the European Commission previously expressed deep concerns about the competitive landscape of the European food delivery market when reviewing Prosus's acquisition of Just Eat Takeaway.com.

A source close to the transaction revealed that once Uber's stake reaches a specific threshold, it must first pass antitrust review, stating, "Relevant consultations are still ongoing, and whether a final acquisition deal can be reached remains uncertain."