Uber to acquire Glovo Kenya in Sh1.95 trillion deal
Ride-hailing and delivery company Uber is set to acquire Glovo Kenya as part of a global deal to buy Delivery Hero’s food delivery business in about 50 markets across Africa, Asia, the Middle East and Latin America.
The transaction, valued at about Sh1.95 trillion, will see Uber take over several well-known delivery brands owned by Berlin-based Delivery Hero, including Glovo, foodpanda, HungerStation, talabat and Pedidos Ya.
The acquisition includes Glovo’s operations in Kenya, Nigeria, Uganda, Morocco and several other countries.
If approved by regulators, the deal will significantly strengthen Uber’s presence in Kenya by combining its ride-hailing services with Glovo’s food delivery, grocery delivery and on-demand retail business.
The combined platform is expected to offer customers a wider range of transport and delivery services through a single ecosystem.
Uber Chief Executive Officer Dara Khosrowshahi said the acquisition will help the company expand its services while creating more opportunities for customers, merchants and delivery partners.
“By bringing our platforms together, Uber will extend affordable, reliable delivery to many millions more people in some of the world’s most dynamic economies, while creating more opportunities for merchants and couriers,” he said.
The deal comes at a time when Kenya’s online delivery market is expanding rapidly, driven by increased smartphone use, urbanisation and growing demand for food delivery, grocery shopping and other digital commerce services.
Delivery Hero said its board had approved the transaction, noting that the sale would strengthen the company’s long-term position as competition in the global delivery business continues to intensify.
As part of a separate agreement, Delivery Hero will also sell its operations in 14 European markets where it competes directly with Uber Eats to New York-based investment firm SSW Partners for approximately Sh210 billion (€1.4 billion).
The European portfolio includes Glovo businesses in countries such as Spain, Portugal, Poland, Romania and Moldova.
The proposed acquisition remains subject to regulatory approvals and other standard closing conditions before it can be completed.
Once the transaction is finalised, Uber’s combined mobility and delivery business is expected to operate in 99 countries, making it one of the world’s largest transport and delivery platforms.