Uber has paused most of its planned expansion of its Uber Eats food delivery service across Europe as it continues pursuing a takeover of Germany’s Delivery Hero, according to a report by the Financial Times cited by Reuters.
The report said Uber has shelved plans to launch Uber Eats in five of the seven European markets it had intended to enter this year, including Austria, Norway and Greece. The remaining two affected markets were not identified.
Earlier this year, the company announced plans to expand its food delivery operations into Austria, Denmark, Finland, Norway, the Czech Republic, Greece and Romania, estimating the move would generate an additional $1 billion in gross bookings over the next three years.
The reported shift in strategy comes as Uber presses ahead with efforts to acquire Delivery Hero, one of Europe’s largest food delivery companies.
In May, Delivery Hero confirmed it had received a takeover proposal from Uber valued at €33 per share. Reuters later reported that Uber had increased its stake in the German company to nearly 37 per cent from 25 per cent after acquiring additional shares from investor Aspex Management, reinforcing its position as the proposed deal advances.
Uber told the Financial Times that the decision to scale back its planned expansion followed the “huge success” of recent launches in Finland and Denmark. The company said it now intends to focus on strengthening its presence in markets where Uber Eats already operates rather than entering new ones.
Neither Uber nor Delivery Hero immediately responded to Reuters’ requests for comment on the report.
If completed, the acquisition would further consolidate Europe’s food delivery sector, where operators have increasingly shifted their focus from rapid expansion to sustainable profitability after years of heavy investment and intense competition.
