Uber Re-Enters Domestic Delivery Market via DH Acquisition, Intensifying Competition with Coupang Eats

Uber's acquisition of Delivery Hero (DH) is expected to intensify competition in the domestic delivery market. With its global delivery and mobility expertise, Uber's indirect control of Baemin is likely to shift the dynamics of competition with Coupang Eats. While Baemin will maintain independent operations for now, future integration of subscription, payment, and mobility services could expand the domestic delivery service landscape. Uber and DH finalized a business combination agreement on July 16, with Uber set to offer a cash tender offer of €41.50 per share, potentially totaling $13.7 billion. The transaction is expected to conclude by the second half of next year. Upon completion, Uber will become the largest delivery platform operator globally, excluding China, and expand its business scope by combining mobility and food delivery services. Uber already ranks second in the North American market behind DoorDash, holds the top position in Japan and Australia, and competes with Deliveroo and Just Eat Takeaway in Europe. The acquisition will secure Uber's leadership in Korea and the Middle East. Uber emphasized that the deal will nearly double its cross-platform customer base, expanding its verified cross-platform strategy's potential. The domestic delivery market will also see significant impacts, as Uber's existing taxi-hailing service 'Uber Taxi' will now complement delivery services following the acquisition. After withdrawing from the Korean market in 2019, Uber is re-entering through indirect control of Baemin, eight years after its initial attempt with Uber Eats.