German food delivery company Delivery Hero announced on Thursday it has agreed to be acquired by U.S. ride-hailing giant Uber in a 12.7 billion euro ($14.6 billion) deal after months of speculation, which opens the door to the American firm making the global takeout giant and further consolidating its grip in the field.
The acquisition advances the U.S. ride-hailing firm's efforts to build a global food-delivery business as it faces intensifying competition from Just Eat, owned by Dutch group Prosus, and U.S. rival DoorDash, which has also been expanding aggressively.
"Combination is designed to accelerate innovation and expand the range, value and convenience of services for customers, vendors and riders," the German company said in the statement.
Founded in 2011, Delivery Hero currently operates in over 60 markets and is one of the world's biggest food delivery groups.
It has also expanded beyond its traditional food business to "quick commerce," delivering small packages to customers.
