RIYADH: Uber Technologies has acquired Germany’s Delivery Hero in a deal valued at €12.7 billion ($14.53 billion), reshaping the competitive landscape of the global food delivery and quick-commerce sector.
According to Al-Eqtisadiah’s financial analysis unit, the acquisition comes at a time when Saudi Arabia has emerged as one of the group’s most important operating markets, having recorded the highest subscription rate among all of Delivery Hero’s markets.
The deal was struck at €41.5 per share, combining ride-hailing, food delivery, and quick-commerce operations into a single platform operating in 99 countries, with a total order value of $236 billion based on 2025 figures, reinforcing Uber’s position as one of the largest players in the global digital economy.
Strong Q1 2026 results
The acquisition follows strong operating results posted by Delivery Hero in the first quarter of 2026, with total order value rising 8.8 percent year on year to €12.5 billion. Segment revenue grew 17.8 percent to reach €3.73 billion. Quick-commerce order value jumped 30 percent to €2.2 billion, raising its share of total order value to 18 percent.
The company reaffirmed its target of adjusted earnings before interest, taxes, depreciation, and amortization between €910 million and €960 million for 2026, with free cash flow expected to exceed €200 million.
Saudi Arabia’s leading role
The results reveal that Saudi Arabia has become one of Delivery Hero’s most important growth drivers, recording the highest subscription rate of any market in the group.
The company said 61 percent of total order value in Saudi Arabia came from customers subscribed to its loyalty/subscription programs, the highest ratio group-wide, while total order value across the Middle East and North Africa rose 16.1 percent year on year, driven by strong growth at the HungerStation and Talabat apps.
While the 61 percent figure does not mean 61 percent of customers are subscribers, it shows that subscribed customers generate 61 percent of total order value, one of the most important revenue-quality indicators for digital economy companies, since it correlates with higher order frequency, improved customer loyalty, and revenue stability.
Competition in Saudi Arabia
The deal comes as the Saudi market sees intensifying competition among food delivery apps. Estimates from Momentum Works indicate HungerStation held about 40 percent of the market by the end of 2025, compared with about 33 percent for Keeta, and more than 20 percent for Jahez.
Jahez, meanwhile, recorded more than 111.6 million orders in 2025, with a total order value of SR7.2 billion ($1.92 billion) and revenue of SR2.3 billion. In the first quarter of 2026, Jahez’s order value reached about SR2.3 billion across 31.7 million orders, reflecting the scale of competition in the region’s largest food delivery market.
Uber’s acquisition of Delivery Hero gives it direct entry into the Saudi market via HungerStation, without needing to build a new customer base or operating network from scratch, while gaining the group’s highest subscription base, in addition to leveraging Uber’s expertise in artificial intelligence, dynamic pricing, fleet management, and digital advertising.
A bet on recurring revenue
From an investment perspective, the deal is not merely a geographic expansion but an acquisition of a recurring revenue base. Digital economy companies are no longer judged solely by user numbers, but by the share of customers subscribed to paid services, given the revenue stability and higher average spend per user this provides.
This is why the 61 percent figure in Saudi Arabia stands out as one of the key indicators that attracted Uber, it means the majority of order value comes from subscribed customers, a more sustainable and profitable business model compared with relying on one-off orders.
The deal also reflects Uber’s confidence in Delivery Hero’s ability to sustain growth, having paid a premium of 127 percent over Delivery Hero's average share price before news of the deal emerged last May, and about 34 percent above the average share price over the three months preceding the announcement, signaling that the real value Uber is betting on lies in the operating network, brands, and future revenue.
In the first comment from the Saudi market, HungerStation’s CEO wrote on X that Delivery Hero joining Uber represents “the biggest growth opportunity for the sector,” stating that combining ride-hailing, delivery, quick-commerce, and innovation would create a global platform better able to serve customers, merchants, and delivery partners.
US investment firm SSW Partners will acquire Delivery Hero’s operations in 14 other markets where Uber and Delivery Hero compete, for €1.4 billion. Delivery Hero’s management has recommended that shareholders approve the deal, which is expected to close in the second half of 2027.
