If successful the deal would accelerate Uber’s ambitions in food delivery and create the largest food delivery group outside China.
The combined business would operate across 99 markets - nearly double the number of markets in which the company currently offers both mobility and delivery services - and generate an estimated $236bn of gross merchandise value (GMV) in 2025, according to Delivery Hero.
The acquisition would put Uber on a better footing to compete in the delivery category against rivals Just Eat and DoorDash, which acquired Deliveroo earlier this year.
Backed by Delivery Hero’s management and supervisory board, the deal is expected to complete in the second half of next year, although it is likely to face extensive regulatory scrutiny given the scale of the combined business and overlap in several markets.
To help address antitrust concerns, Delivery Hero has agreed to sell operations in 14 markets to US investment firm SSW Partners for approximately €1.4bn.
Prosus, one of Delivery Hero’s largest shareholders, has also agreed to dispose of its near-17% stake, reducing the likelihood of a competing offer.