Uber Technologies Sees Delivery Hero Deal Unlocking 50M Users and $1.2B in Synergies

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’s Waymo Detour Tests the Stock’s Robotaxi Bull Case Khosrowshahi described Delivery Hero as “a natural extension” of Uber’s strategy of combining mobility and delivery services. He said Uber has seen cross-platform users generate roughly three times the gross bookings and profits of single-product users. The transaction, he said, would expand Uber’s cross-platform opportunity by more than 50 million consumers. 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