Bernstein questions Uber capital allocation in potential Delivery Hero acquisition
Investing.com -- Food delivery giant Uber Technologies is pursuing a takeover of Delivery Hero in a deal that could reshape the global delivery industry, analysts said.
Uber has offered €33 per share for Delivery Hero, valuing the company at roughly $14–18 billion depending on the final bid price. The proposed acquisition comes amid accelerating consolidation in online delivery, following recent moves such as DoorDash’s acquisition of Deliveroo and Prosus’ purchase of Just Eat Takeaway.
Analysts at Bernstein said that Uber’s interest reflects both the scarcity of major delivery assets and the growing importance of scale in an increasingly competitive market.
Analysts believe Uber sees strategic value in expanding its global delivery footprint and integrating Delivery Hero’s operations with Uber’s mobility business in several markets. The deal would also strengthen Uber’s position against rivals including DoorDash, Meituan, Coupang, and Grab.
However, the acquisition could dilute Uber’s earnings in the near term. Under Bernstein’s base-case model, the deal would reduce Uber’s GAAP earnings per share by around 7% in the first year after closing, improving to about 1% dilution in the second year as synergies and Delivery Hero’s profitability improve.
Analysts expects Uber would finance 70% of the transaction with debt and 30% with cash. Analysts estimate cost synergies of $200–250 million could be achieved through reductions in overlapping research, administration, and support functions.
Regulatory scrutiny is expected to be a major hurdle, particularly in Europe and parts of the Middle East. Bernstein identified countries including Spain, Turkey, Portugal, Sweden, Norway, and Chile as potential antitrust flashpoints due to overlapping market share between Uber Eats and Delivery Hero brands.
Despite concerns about dilution and regulatory risk, Bernstein maintained “Outperform” ratings on both Uber and DoorDash, arguing that long-term growth opportunities in delivery and quick commerce remain significant.
Bernstein analysts estimate that a higher bid of €38–40 per share is being discussed after some Delivery Hero shareholders reportedly rejected the initial proposal. At those levels, the acquisition would value Delivery Hero at roughly 15–16 times projected 2026 EBITDA.
Delivery Hero operates across around 70 countries and processed more than $55 billion in gross merchandise volume in 2025. Its strongest markets are in Asia and the Middle East and North Africa region, where brands such as Talabat, Foodpanda, Glovo, and Baedal Minjok hold leading positions.
DoorDash could also play a role in the outcome. The Financial Times reported that DoorDash may be interested in acquiring some of Delivery Hero’s Middle Eastern assets if regulators require divestitures.