UBER IN EARLY TALKS TO BUY DELIVEROO?
Ride-hailing firm’s attempt to dominate Europe food-delivery business, say sources
UBER Technologies Inc is in early talks to buy food-delivery company Deliveroo for several billion dollars, according to people familiar with the plans.
A bid for London-based Deliveroo, last valued at more than US$2 billion (RM8.26 billion), would mark a major attempt by Uber to dominate the food-delivery business in Europe. An acquisition price is unknown. Any offer would need to be considerably above its latest valuation.
The talks could fall apart, in part because Deliveroo and its investors have been reluctant to relinquish independence, said the people.
Although little-known in the crowded United States market, which it has avoided, Deliveroo is ubiquitous in Europe’s capitals and its services are available in more than 200 cities on four continents.
Shares in rival food delivery firms fell yesterday. Delivery Hero SE shed 2.8 per cent in early trading in Frankfurt, while Just Eat Plc dropped 6.7 per cent.
Uber chief executive officer Dara Khosrowshahi has made the company’s food-delivery business a top priority ahead of a planned initial public offering in the second half of next year.
The San Francisco-based company was weighing other acquisitions, too. It’s in talks with Middle Eastern ride-sharing rival Careem, said sources.
After selling its ride-hailing businesses in Southeast Asia, China and Russia, Uber is eager to buy competitors, rather than sell its remaining local businesses.
Deliveroo is one of Europe’s biggest startups and last year raised US$480 million from investors including Fidelity Investments and T. Rowe Price Group Inc. The company competes with Uber Eats, Uber’s food delivery business.