The deal is worth $14.6 billion

Uber Technologies acquired German group Delivery Hero in a deal valued at €12.7 billion (about $14.6 billion), redrawing the competitive landscape in the global food delivery and quick commerce sector.

According to the Financial Analysis Unit of Al-Eqtisadiah, the acquisition came as Saudi Arabia emerged as one of the group's most important operational assets, after it recorded the highest subscription rate among all its markets.

The deal was completed at €41.5 per share, combining transport, food delivery, and quick commerce businesses into a platform operating in 99 countries, with a total order value of $236 billion according to 2025 data, strengthening Uber's position as one of the largest global players in the digital economy.

The acquisition followed strong operational results achieved by Delivery Hero in the first quarter of 2026, as gross order value rose 8.8% year-on-year to €12.5 billion.

In contrast, the group's segment revenues grew 17.8% to reach €3.73 billion.

Quick commerce order value also increased 30% to €2.2 billion, raising its contribution to 18% of total order value.

The company confirmed its target for adjusted EBITDA between €910-960 million in 2026, with free cash flow expected to exceed €200 million.

Delivery platforms account for 40% of total sales

Delivery app commissions exceed the global average

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The company's results reveal that Saudi Arabia has become one of the main drivers of Delivery Hero's business, after recording the highest subscription rate among all the group's markets.

The company stated that 61% of total order value in Saudi Arabia came from customers subscribed to loyalty programs, the highest percentage across the group, while total order value in the Middle East and North Africa region rose 16.1% year-on-year, driven by strong growth of the HungerStation and Talabat apps.

The 61% figure does not mean that proportion of customers are subscribers, but rather that subscribed customers generate 61% of total order value, which is one of the most important indicators of revenue quality for digital economy companies, as it is linked to higher order frequency, improved customer loyalty, and revenue stability.

Delivery platforms account for 40% of total sales

Delivery platforms account for 40

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Competition in Saudi Arabia

The deal comes at a time when the Saudi market is witnessing escalating competition among food delivery apps, as Momentum Works estimates indicate that HungerStation holds about 40% of the market by the end of 2025, compared with about 33% for Keeta and more than 20% for Jahez.

In contrast, Jahez recorded over 111.6 million orders in 2025, with a total order value of SAR 7.2 billion and revenues reaching SAR 2.3 billion.

Jahez's order value in the first quarter of 2026 reached about SAR 2.3 billion through 31.7 million orders, reflecting the scale of competition in the largest food delivery market in the region.

Uber's acquisition of Delivery Hero gives it direct access to the Saudi market via HungerStation, without needing to build a new customer base or operational network, while benefiting from a subscription base that is the highest within the group, in addition to Uber's expertise in artificial intelligence, dynamic pricing, fleet management, and digital advertising.

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Bet on recurring revenue

From an investment perspective, the deal is not just geographic expansion but an acquisition of a recurring revenue base.

Digital economy companies are no longer measured only by the number of users, but by the proportion of customers subscribed to paid services, due to the revenue stability and higher average spending per user they provide.

Hence the 61% figure in Saudi Arabia appears to be one of the most important indicators that attracted Uber, as it means that the majority of order value comes from subscribed customers, a more sustainable and profitable business model compared to relying on individual orders.

The deal also reflects Uber's confidence in Delivery Hero's ability to continue growing, as it paid a premium of 127% compared to the company's average share price before the deal news emerged last May, and about 34% above the average share price in the three months preceding the announcement, indicating that the real value it is betting on lies in the operational network, brands, and future revenues.

Read also: 118 million orders in Q1... Notable growth in Saudi delivery sector

In the first comment from the Saudi market, the CEO of HungerStation wrote on platform X that Delivery Hero's joining Uber represents 'the biggest opportunity for growth in the sector,' affirming that combining transport, delivery, quick commerce, and innovation will create a global platform better able to serve customers, merchants, and delivery partners>

U.S. investment firm SSW Partners will acquire the German group's activities in 14 other markets where Uber and Delivery Hero compete for €1.4 billion.

Delivery Hero's management recommended shareholders approve the deal, expected to close in the second half of 2027.

Financial Analysis Unit