Uber reportedly in talks to buy Deliveroo for US $2-billion

Uber CEO Dara Khosrowshahi has made the company's food-delivery business a top priority ahead of a planned initial public offering in the second half of 2019 and is reportedly in talks to acquire Deliveroo
Anis Harb, general manager, Deliveroo Middle East has not commented on the rumours.
Anis Harb, general manager, Deliveroo Middle East has not commented on the rumours.

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Uber Technologies, the parent company of the ride-hailing and delivery company Uber, is reportedly in talks to buy food-delivery company Deliveroo for several billion dollars.

The talks were first reported by Bloomberg and carried by Logistics Middle East’s sister publication Arabian Business, based on information supplied by people familiar with the plans.

A bid for London-based Deliveroo would mark a major attempt by Uber to dominate the food-delivery business in Europe and the Middle East, where Uber has launched its own food-delivery arm Uber Eats in the UAE.

An acquisition price is unknown, but any offer would need to be considerably more than its latest valuation, which is just over US $2-billion.

Deliveroo and its investors have been reluctant to relinquish independence, so the sources who spoke to Bloomberg said the talks could amount to nothing.

Spokesmen at Deliveroo and Uber declined to comment.

The developments come as Uber also enters talks to buy ride-sharing rival Careem. After selling its ride-hailing businesses in Southeast Asia, China and Russia, Uber is reportedly eager to buy competitors, rather than sell its remaining local businesses.

Deliveroo is one of Europe’s biggest start-ups with operations in 200 cities across four continents. The company competes directly with Uber Eats, Uber’s food delivery business.

If the deal goes through, it would be the latest example of a European or Middle Eastern logistics start-up falling into foreign hands. Amazon acquired Dubai-based online retailer SOUQ.com for US $580 million last year.

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