Uber has increased its stake in Delivery Hero, becoming the German food delivery company’s largest shareholder as consolidation continues across the global delivery sector.
Delivery Hero posted on its website that Uber now owns about 19.5 percent of its issued capital, up from roughly 7 percent, with an additional 5.6 percent tied to options.
“The company remains focused on driving operational performance and executing on the strategic review to deliver long-term value for all shareholders,” the company wrote in a May 18 press release.
The move comes after Delivery Hero confirmed it received a takeover offer from Uber valued at about $38.29 per share. Reuters reported the proposed deal would value the company at more than $11 billion.
Shares in Delivery Hero rose more than 10 percent following reports that Uber was considering an improved bid for the company. Founded in 2011, the company operates across about 65 countries throughout Asia, Europe, Latin America, the Middle East and Africa. The company operates several food delivery brands and logistics platforms across four continents.
Delivery Hero announced that co-founder and CEO Niklas Östberg plans to step down by March 31, 2027, as the company begins a leadership transition.
Uber’s growing investment adds to a wave of consolidation across the restaurant delivery sector as companies continue pushing for scale and profitability. Earlier this year, DoorDash acquired Deliveroo while Prosus purchased Just Eat Takeaway.
Uber did not immediately respond to a request for comment.
