Uber said to be in talks to buy Deliveroo

The acquisition talks could fall apart, in part because Deliveroo and its investors have been reluctant to relinquish independence, said people with knowledge of the firm's plans. Although little known in the crowded US market, Deliveroo is ubiquitou
The acquisition talks could fall apart, in part because Deliveroo and its investors have been reluctant to relinquish independence, said people with knowledge of the firm's plans. Although little known in the crowded US market, Deliveroo is ubiquitous in Europe's capitals.PHOTO: BLOOMBERG

A bid for food delivery firm would mark its attempt to dominate the business in Europe

LONDON • Uber Technologies is in early talks to buy food delivery company Deliveroo for several billion dollars, according to people familiar with the plans.

A bid for London-based Deliveroo, last valued at more than US$2 billion (S$2.73 billion), would mark a major attempt by Uber to dominate the food delivery business in Europe. An acquisition price is unknown.

Any offer would need to be considerably above its latest valuation, according to people with direct knowledge of Deliveroo plans.

The talks could fall apart, in part because Deliveroo and its investors have been reluctant to relinquish independence, said the people, who asked not to be identified because the information is private. Spokesmen at Deliveroo and Uber declined to comment.

Uber chief executive officer 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 next year.

The San Francisco-based company is weighing other acquisitions, too. It's in talks with Middle Eastern ride-sharing rival Careem, people familiar with the matter have said.

After selling its ride-hailing businesses in South-east Asia, China and Russia, Uber is eager to buy competitors, rather than sell its remaining local businesses.

Deliveroo is one of Europe's biggest start-ups and last year raised about US$480 million from investors including Fidelity Investments and T. Rowe Price Group Inc. The company competes directly with Uber Eats, Uber's food delivery business.

Deliveroo was in financing talks last year with SoftBank Group, one of Uber's major investors. The negotiations abruptly ended after SoftBank concentrated on backing Uber.

Although little known in the crowded US market, which it has avoided, Deliveroo is ubiquitous in Europe's capitals. The service is available in more than 200 cities on four continents.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on September 22, 2018, with the headline 'Uber said to be in talks to buy Deliveroo'. Print Edition | Subscribe