Uber pauses Europe food delivery expansion as it pursues Delivery Hero deal, FT reports
Uber's Strategic Shift in European Food Delivery
July 5 (Reuters) - Uber has paused the majority of its planned food delivery expansion in Europe just months after announcing the plans as the ride-sharing company continues to pursue a takeover of Delivery Hero, the Financial Times reported on Sunday.
Countries Affected by the Expansion Pause
Uber no longer plans to launch food delivery in five of the seven countries it had targeted for expansion this year, including Austria, Norway and Greece, the report said. It did not identify the other two countries.
Original Expansion Plans
Earlier in the year, Uber said it planned to expand its food delivery business into seven new European markets - Austria, Denmark, Finland, Norway, the Czech Republic, Greece and Romania.
The company expected the move to generate an additional $1 billion in gross bookings over the next three years.
Uber's Pursuit of Delivery Hero
The San Francisco-based company, however, is still seeking to acquire Delivery Hero, according to the FT report.
Details of the Acquisition Offer
Delivery Hero said in May it had received a €33-per-share ($37.74) offer from Uber, and Reuters reported that the U.S. company had raised its stake in the German food delivery company to nearly 37% from 25% after buying a stake from fellow shareholder Aspex Management.
Market Response and Company Comments
Reuters could not verify the FT report. Uber and Delivery Hero did not immediately respond to requests for comment.
Uber's Statement on the Expansion Halt
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.
Additional Information
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(Reporting by Chandni Shah in Bengaluru; Editing by Raju Gopalakrishnan)
