Uber stalls European food delivery push as it pursues Delivery Hero takeover
Ride-hailing company will no longer launch in five of its seven planned new markets this year
Uber has paused the majority of its planned food delivery expansion in Europe just months after it was announced, as the San Francisco-based giant continues its effort to acquire its biggest rival on the continent.
The company no longer plans to launch in five of the seven countries it had targeted for expansion this year, including Austria, Norway and Greece, according to two people familiar with the matter.
The reversal comes just five months after Uber announced its European food delivery expansion — which also included launches in the Czech Republic and Romania — as part of a push to deliver an additional $1bn in gross bookings over the next three years.
However, the group is still seeking to acquire Delivery Hero, after its €10bn bid for the Berlin-based company was rejected in May.
That deal remains fraught with difficulty. The German company’s biggest shareholder Prosus is considering expanding its stake in a move that could scupper an Uber takeover, while EU regulators are expected to scrutinise any acqusition.
Uber told the FT it had decided to halt its expansion after the “huge success” of launches in Finland and Denmark, with plans to “focus on continuing the momentum” in existing markets.
One industry figure said the pause could help smooth any EU antitrust review of a Delivery Hero takeover, which will probably face scrutiny if Uber agrees a deal because of the large overlap between the two companies’ markets.
Delivery Hero’s Foodora brand is present in Austria, Norway and the Czech Republic; its “efood” service is available in Greece and its Glovo brand in Romania.
The ride-hailing group has been seeking to grow its international food delivery offering in a bid to scale its operation and tackle DoorDash-owned Wolt and Deliveroo.
But the expansion plans have faced difficulties, with its global head of delivery, Susan Anderson, announcing her departure last month after just 12 months in the role.
While Uber Eats has gained market share in the UK, France and Germany, it has lost ground in the US to DoorDash, which has widened its market share to 64 per cent, its highest level since the end of the coronavirus pandemic. In comparison, Uber has a 31 per cent share of the US market, according to YipitData.
Uber Eats has also been hit with a technical issue in recent months that left some partner restaurants unable to receive orders, according to a person familiar with the matter.
Uber said it had not seen “any material impact to Delivery’s overall performance” from the issue, adding it had not been a role in Anderson’s exit.