Talabat gained on the Dubai Financial Market after its parent company, Delivery Hero, confirmed advanced acquisition talks with Uber. This signals a potential shakeup for the region’s food delivery industry.

Uber’s pursuit of Delivery Hero is already moving markets. Shares of Talabat, the Dubai-listed delivery platform owned by Delivery Hero, climbed after news of the potential takeover.

Why You Should Care

Talabat is one of the largest food and grocery delivery platforms in the MENA region. A change in ownership at its parent company could influence the company’s long-term strategy, investment priorities, and competitive positioning across eight regional markets. The proposed acquisition also comes as global delivery companies race to consolidate amid slowing growth and mounting competition.

The Details

Talabat’s shares rose as much as 2.5% to AED 1.20 (USD 0.33) during Wednesday’s session, outperforming the Dubai Financial Market, before closing 0.8% higher. The benchmark index ended the day up 0.3%.

The gains followed reports that Uber has discussed acquiring Berlin-based Delivery Hero for roughly EUR 40 (USD 45.9) per share, valuing the company at more than EUR 12 billion (USD 13.7B). Delivery Hero confirmed it is engaged in advanced discussions with Uber, but said negotiations are still ongoing.

The talks come weeks after Uber increased its stake in Delivery Hero to 36.83%, reinforcing expectations that the ride-hailing giant could pursue full ownership.

Talabat operates in the UAE, Egypt, Kuwait, Qatar, Bahrain, Oman, Jordan, and Iraq. According to market research firm Markent, the Gulf’s food delivery, grocery delivery, and quick commerce market is valued at approximately USD 19 billion. Talabat generated around USD 7.8 billion in gross merchandise value across Gulf markets, representing most of its USD 9.5 billion total GMV.

The company has strengthened its regional footprint through acquisitions. Delivery Hero purchased Zomato’s UAE food delivery business in 2019 before acquiring grocery platform Instashop in 2020. Talabat later acquired Instashop from its parent company for USD 32 million last year.

The Ripple

A successful acquisition would significantly expand Uber’s global food delivery business and strengthen its position against competitors such as DoorDash, which has also grown through acquisitions. It would also give Uber greater exposure to high-growth markets across the Middle East, where Talabat remains one of the leading delivery platforms.

The transaction is expected to face antitrust scrutiny because Uber and Delivery Hero operate in several overlapping markets across Europe and the Middle East. Regulatory reviews could ultimately determine whether the deal proceeds.

What to Watch

Investors will be watching whether Uber submits a formal offer and whether regulators approve the transaction. If the acquisition moves ahead, attention will likely shift to Talabat’s future strategy. This includes whether Uber expands investment in the region or integrates more of its delivery operations under a unified global network.