Uber tightens grip on Europe’s food delivery market with Delivery Hero stake

• Uber raises its holding in Delivery Hero to about 7 per cent.
• Deal helps Prosus meet EU competition conditions tied to Just Eat takeover.
• Fresh sign of consolidation across Europe’s food delivery market.

The European food delivery market is starting to look like a game of strategic stakes rather than just customer orders. Uber has picked up a 4.5 per cent stake in Delivery Hero for roughly £235.4 million, buying the shares from Prosus, the owner of Just Eat Takeaway.

This takes Uber’s total holding in the German group to about 7 per cent, building on an earlier $300 million (£222.1 million) investment made in May 2024. The move comes as Uber looks to scale up Uber Eats across Europe, at a time when competition is tightening and margins remain under pressure.

For Prosus, the sale is less about strategy and more about compliance. The firm had to trim its stake in Delivery Hero after acquiring Just Eat Takeaway, following concerns raised by the European Commission over market concentration.

By selling 13.6 million shares at €20 each (£17.43), Prosus has cut its holding from 26.3 per cent to 21.8 per cent. The price sits about 22 per cent above the one-month average, but slightly below the €20.14 (£17.55) closing level recorded on Thursday.

The company is expected to reduce its stake further to single digits by August, as part of regulatory commitments. It said it remains focused on completing the sale within the required timeframe while “maximising shareholder value”, as quoted in a news report.

Bigger players, fewer seats

For Uber, the timing is telling. The European food delivery space is going through another round of consolidation, with scale becoming critical to survival. DoorDash’s £2.9 billion acquisition of Deliveroo last year has already shifted the competitive balance.

Uber’s minority stake does not give it control over Delivery Hero, but it does place the company closer to one of Europe’s largest delivery networks. Whether this signals deeper collaboration or simply a financial bet is not entirely clear yet.

Delivery Hero itself has limited exposure to the UK, having sold its Hungryhouse business to Just Eat back in 2016. But its broader European footprint still makes it a key player in the region’s delivery ecosystem.

A market that’s still settling

For customers, these deals may not change much overnight. Orders will still arrive through familiar apps, and choices may look the same. But behind the scenes, the structure of the market is shifting.

Fewer, larger players are starting to dominate, and investments like this suggest companies are positioning early rather than reacting late. The question is whether this wave of consolidation will bring stability to a sector long defined by heavy spending and thin profits—or simply intensify the competition further.