Uber In Talks With Getir To Expand Delivery Services In Turkey: Report

• The deal could reportedly focus on Getir’s delivery business and be valued at as much as $1 billion.
• Bloomberg added that there is no certainty that the talks will lead to a deal. 
• The move comes as Uber seeks to expand its delivery business into grocery and retail, away from just food.
   

Uber Technologies Inc. is reportedly in talks with grocery delivery service Getir for a potential deal to expand its delivery operations in Turkey.

Bloomberg reported on Thursday, citing people familiar with the matter, that Uber has been holding preliminary discussions with Getir investor Mubadala Investment about acquiring key parts of the Turkish company.

The deal could focus on Getir’s delivery business and be valued at up to $1 billion, the report said. However, the deal value depends on the assets that will ultimately be included in the transaction, the report noted, while also adding that there is no certainty that the talks will lead to a deal.

The report also noted that Mubadala is considering selling Getir’s finance business separately. Getir restructured its business last year and closed its overseas operations.

Uber’s Delivery Push

The move comes as Uber seeks to expand its delivery business into grocery and retail, away from just food.

Earlier this week, the company reported that its third-quarter revenue increased 20% to $13.5 billion, primarily due to growth in the company’s mobility and delivery businesses. While revenue from the company’s delivery segment rose 29% to $4.5 billion in the quarter, revenue from the mobility segment grew 20% to $7.7 billion, even as freight division revenue remained flat year-on-year.

Uber CEO Dara Khosrowshahi said on the company’s earnings call that its ambitions “go well beyond meals.” He added that its grocery and retail business is already approaching a $12 billion Gross Bookings run-rate and is growing significantly faster than food delivery.

“As consumers engage more with G&R, they use Uber more broadly and stay with us longer,” he added.

How Did Stocktwits User React?

On Stocktwits, retail sentiment regarding Uber stock remained in the 'extremely bullish' territory over the past 24 hours, while message volume remained at 'extremely high' levels.

UBER stock is up by 52% this year and by about 23% over the past 12 months.

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