Uber Technologies (NYSE:UBER) executives said the company’s proposed acquisition offer for Delivery Hero is intended to expand its cross-platform mobility and delivery strategy into additional markets while remaining within Uber’s financial discipline and capital allocation framework.
Speaking on a conference call about the announced transaction, Uber CEO Dara Khosrowshahi said the company is pursuing the deal “from a position of strength,” citing Uber’s growth, expanding profitability and free cash flow generation. He said those factors give Uber flexibility to keep investing in organic growth and autonomous vehicles while also pursuing acquisitions that meet its strategic and financial criteria.
Uber Expects EPS Accretion and $1.2 Billion in Synergies
Uber CFO Balaji Krishnamurthy said the transaction is expected to close in the second half of 2027, subject to regulatory approvals. He said Uber expects the deal to be modestly accretive to non-GAAP earnings per share at close and to deliver run-rate synergies of $1.2 billion within 18 months after closing.
By year three, Krishnamurthy said Uber expects high single-digit percentage accretion to non-GAAP EPS. He said the company has developed an integration timetable and will provide more details closer to the close of the transaction.
Krishnamurthy said the largest expected synergy driver is migrating Delivery Hero brands onto a common technology platform. He said Uber operates Uber Eats on a single global technology platform and that Delivery Hero’s business, except Baemin in Korea, also runs on a common backend architecture, which he said should reduce integration complexity.
He also pointed to broader cost opportunities, including headcount, support and shared services, payments, insurance and other areas. Krishnamurthy said revenue synergies are included in Uber’s assumptions but are “quite small” relative to the $1.2 billion target.
Middle East and Korea Highlighted as Key Opportunities
Khosrowshahi highlighted the Middle East and Korea as particularly attractive markets. In the Middle East, he pointed to Delivery Hero’s Talabat business, which he described as a leading food delivery player that is expanding into grocery and other categories.
He said Uber and Talabat each had about 8 million monthly active users and both delivered roughly 30% gross bookings growth last year, with Uber slightly above that level and Talabat slightly below it. He also said both businesses have attractive standalone EBITDA margins of about 7%.
In Korea, Khosrowshahi said Baemin is “by far” the leader in the marketplace. He said Uber’s mobility presence in Korea began only a couple of years ago and suggested the company could pursue a strategy similar to Japan, where Uber used a stronger delivery position to help grow its mobility business.
Delivery Hero’s Non-Food and Advertising Businesses Seen as Growth Areas
Khosrowshahi said Delivery Hero’s brands are leading players in most of the markets where they operate and are profitable today. He said Delivery Hero has expanded into grocery and quick commerce and has built that business to adjusted EBITDA profitability on a margin basis, according to Uber’s view.
He also pointed to Delivery Hero’s advertising business as an area of interest. Khosrowshahi said Delivery Hero’s advertising revenue as a percentage of gross merchandise value is higher than Uber’s and estimated it at about 3% of GMV. He said Uber expects to learn from Delivery Hero’s advertising team while continuing to grow its own advertising business.
Executives Say Regulatory Path Is Clear
Khosrowshahi said Uber believes it has “a clear path to closing” and has structured the transaction to facilitate the regulatory process while preserving the strategic value of the combination. He said Uber’s diligence included a detailed review of the regulatory framework and characterized the deal as an expansion into complementary markets rather than a combination of overlapping delivery businesses.
Krishnamurthy said the German takeover process is complex but includes “well-defined steps.” He said Uber already has economic exposure to 37% of Delivery Hero and that Prosus has irrevocably committed to tender its stake, bringing Uber’s economic ownership position to more than 50% following a successful offer.
Khosrowshahi closed the call by thanking the Delivery Hero and Uber teams and said the companies have more work ahead to realize the potential value of the transaction for shareholders.
About Uber Technologies (NYSE:UBER)
Uber Technologies, Inc is a technology company that operates a global platform connecting riders, drivers, couriers, restaurants and shippers. Founded in 2009 by Garrett Camp and Travis Kalanick and headquartered in San Francisco, Uber developed one of the first large-scale ride-hailing marketplaces and has since expanded into a broader set of mobility and logistics services. The company completed its initial public offering in 2019 and continues to position its app-based network as a multi-modal transportation and delivery platform.
Uber’s principal businesses include mobility services (ride-hailing and shared rides), delivery through Uber Eats, and freight logistics via Uber Freight.
