It’s not official until it’s really official. The competition regulator of Saudi Arabia is reportedly reviewing and examining Uber’s proposed $14.8 billion takeover of Delivery Hero. This adds a regulatory scrutiny in a market that will play a big role after this acquisition. Here’s the scoop in this Ridesharingforum.com series.
Saudi Arabia on the scene
Since Saudi Arabia is one of the biggest markets of Delivery Hero, it is only right for this country to conduct a review of this acquisition. The biggest question is, “What would change?”
The Saudi General Authority for Competition is currently investigating the proposed takeover. It places the spotlight on the competitive implications of “one of the food delivery industry’s largest recent consolidation moves.”
Around 61 percent of the value of orders in Saudi Arabia come from customers enrolled in the subscription or loyalty programs of Delivery Hero.
RSF has been part of the action since Uber agreed to acquire the Germany-based Delivery Hero last July in a transaction valued at around $14.8 billion, with the two companies not worrying there will be obstacles.
A share of the market
If you are asking whether or not Saudi Arabia should meddle, it actually should since Delivery Hero also owns HungerStation, one of the largest food delivery platforms in Saudi Arabia. The takeover would provide Uber, which also operates ridesharing in the Middle East country, a substantial position in the Middle Eastern country’s delivery market through HungerStation.
Through HungerStation, Saudi Arabia was offering it an estimated 40 percent share at the end of 2025, compared with roughly 33 percent for Keeta and over 20 percent for Saudi Arabia-listed Jahez.
Beyond Saudi Arabia
This also means hitting two birds with one stone. The takeover of Uber for Delivery Hero extends well beyond Saudi Arabia. The transaction is intended to merge two major global delivery networks and create the largest food-delivery group outside China, Reuters reported when the agreement was announced last July. Delivery Hero also operates around Asia, Latin America, Africa, and Europe.
This scrutiny also comes together with this time when Saudi Arabia is increasing its hands-on for corporate transactions, not just for Uber and Delivery Hero.
Is there a chance that the deal won’t push through following the results of this scrutiny? It’s also official that Saudi Arabia’s review will never indicate the transaction will get blocked, or subjected to conditions. However, it does make the country’s approval an additional regulatory consideration for Uber and Delivery Hero, similar to saying that, “Hey, notice us, we’re here!”
The transaction will close within 12 months after the announcement last July. Do you have insights to share? Or, questions about this update? Open your account on Ridesharing Forum to share your thoughts. You may also tell this story around with your family and friends. RSF is your newsroom for ridesharing, coupons, food deliveries, business, lifestyle, and so much more! ‘Til then!