Shares of Dubai-listed Talabat gained on the Dubai Financial Market after its parent company, Delivery Hero, confirmed it is in advanced acquisition talks with Uber. The move could trigger a significant realignment in the MENA region’s competitive food and q-commerce delivery market.
Quick Facts
- Talabat shares rose as much as 2.5%.
- Rumored offer values Delivery Hero at over $13.7B.
- The deal would impact 8 MENA markets.
Market Reacts to Takeover Talks
Talabat’s stock climbed as much as 2.5% to AED 1.20 (USD 0.33) during Wednesday’s trading, outperforming the Dubai Financial Market benchmark index, before settling at a 0.8% gain for the day.
The market activity followed reports that Uber has discussed acquiring Berlin-based Delivery Hero for approximately EUR 40 (USD 45.9) per share. This would value the global delivery giant at more than EUR 12 billion (USD 13.7B). While confirming advanced discussions were underway, Delivery Hero stated that negotiations are ongoing.
Uber’s Consolidation Play
The potential takeover isn’t a surprise to some market watchers. The talks emerged just weeks after Uber boosted its stake in Delivery Hero to 36.83%, fueling speculation that the ride-hailing company was positioning itself for a full acquisition.
A successful deal would massively expand Uber’s global food delivery footprint, creating a stronger challenger to competitors like DoorDash. More importantly for the region, it would give Uber direct control over one of the Middle East’s dominant delivery platforms.
A Shakeup for MENA’s $19B Delivery Market
Talabat is a major force in the Gulf’s food delivery, grocery, and quick commerce market, which is valued at an estimated USD 19 billion. The platform operates across the UAE, Egypt, Kuwait, Qatar, Bahrain, Oman, Jordan, and Iraq, generating around USD 7.8 billion in gross merchandise value from its Gulf markets alone.
The region has already seen significant consolidation led by Talabat’s parent. Delivery Hero acquired Zomato’s UAE food delivery business in 2019 and bought grocery platform Instashop for $360 million in 2020. Talabat later formally acquired Instashop from its parent company last year. An Uber takeover would place these strategic assets under new leadership, raising questions about future investment and integration with Uber’s global operations.
Regulatory Hurdles Ahead
The transaction is expected to face close antitrust scrutiny, as Uber and Delivery Hero have overlapping operations in several European and Middle Eastern markets. Regulatory reviews will likely be a key factor in determining whether the acquisition can proceed.
About Talabat
Founded in Kuwait in 2004, Talabat is a leading online food and grocery delivery platform in the Middle East and North Africa. As part of Delivery Hero, the company connects users with thousands of restaurants and stores across eight countries in the region.
Source: Waya
