Uber has suspended most of its planned expansion of its food delivery service across Europe as it focuses on a potential takeover of Delivery Hero, according to reports. The ride-sharing company previously announced intentions to enter seven new markets this year but has now scaled back those ambitions significantly.
Earlier this year, Uber outlined plans to launch its food delivery operations in Austria, Denmark, Finland, Norway, the Czech Republic, Greece, and Romania. The company anticipated that the entry into these markets would add approximately $1 billion in gross bookings over a three-year period. However, recent developments indicate that Uber will not proceed with launches in five of these seven countries, including Austria, Norway, and Greece. The identities of the other two markets that will no longer see expansion have not been disclosed.
This strategic shift comes amid Uber’s continued efforts to acquire a controlling stake in Delivery Hero, a leading German food delivery firm. In May, Uber made a €33-per-share offer to Delivery Hero, signaling its intention to consolidate its position in the European delivery sector. Following this, Uber increased its shareholding in Delivery Hero from 25 percent to nearly 37 percent by purchasing shares from Aspex Management, a fellow investor.
Delivery Hero has yet to accept or reject Uber’s proposal, with both companies reportedly in ongoing discussions. The move to concentrate resources on the takeover bid suggests Uber is prioritizing consolidation through acquisition over organic expansion in the continent’s competitive food delivery market.
This recalibration reflects broader industry trends where major players seek scale and market dominance through strategic mergers and acquisitions rather than rapid geographic growth. Analysts note that by potentially controlling Delivery Hero, Uber could leverage an established footprint across Europe, sidestepping the challenges and costs associated with entering multiple new markets independently.
For now, Uber’s pause on European food delivery expansion underscores the company’s cautious approach amid evolving market conditions and its pursuit of a larger role in the global food delivery landscape.
