Talabat, the Dubai-listed food and grocery delivery platform owned by Delivery Hero, saw its shares rise after Delivery Hero confirmed it is in advanced acquisition talks with Uber, a deal that could reshape the MENA food delivery landscape.
Talabat’s stock climbed as much as 2.5% to AED 1.20 (USD 0.33) during Wednesday’s session, outpacing the Dubai Financial Market before closing 0.8% higher, as the benchmark index gained 0.3%. The rally followed reports that Uber has discussed acquiring Berlin-based Delivery Hero for roughly EUR 40 (USD 45.9) per share, valuing the company above EUR 12 billion (USD 13.7 billion). Delivery Hero confirmed the advanced discussions but noted negotiations remain ongoing, weeks after Uber lifted its stake in the company to 36.83%.
Talabat operates across the UAE, Egypt, Kuwait, Qatar, Bahrain, Oman, Jordan, and Iraq, in a Gulf food delivery, grocery, and quick commerce market valued at around $19 billion, according to Markent. The platform generated roughly $7.8 billion of its $9.5 billion total gross merchandise value from Gulf markets alone. Its regional footprint has grown through acquisitions, including Delivery Hero’s 2019 purchase of Zomato’s UAE business, its 2020 acquisition of Instashop, and Talabat’s own $32 million buyout of Instashop from its parent last year.
A completed deal would expand Uber’s global food delivery footprint and strengthen its position against rivals like DoorDash, while deepening its exposure to high-growth Middle East markets. However, the transaction is expected to face antitrust scrutiny given Uber and Delivery Hero’s overlapping operations across Europe and the Middle East, with regulatory review likely to determine whether it proceeds. Investors will now watch for a formal offer from Uber and how Talabat’s strategy shifts if the acquisition moves forward.
