• Uber is consulting with its advisors to explore ways to increase its stake further in Delivery Hero, the report said.
• The company may need to obtain regulatory approvals if it exceeds certain ownership limits in Delivery Hero.
• On Monday, Uber said it “currently” had no intention of raising its stake in Delivery Hero to 30% or more.

Shares of Uber Technologies Inc. (UBER) were in the spotlight on Friday after a Bloomberg report said the company is considering a full takeover of Delivery Hero SE to challenge U.S. rival DoorDash Inc. (DASH) in global markets.

At the time of writing, UBER stock was down 1.5%.

Sources told Bloomberg that Uber is consulting with its advisors to explore ways to increase its stake in the company further and has also been speaking with other Delivery Hero investors about its interest in a deal.

One source told the news outlet that the company may need to obtain regulatory approvals if it exceeds certain ownership limits in Delivery Hero. Talks are ongoing, and there’s no certainty they will lead to a deal, the report said, citing sources.

Delivery Hero In Focus

The news comes after the ride-hailing giant boosted its stake in Delivery Hero earlier this week, now owning about 19.5% of the German company's shares. At that time, Uber said it “currently” had no intention of raising its stake to 30% or more, but reviews investments on a timely basis and could buy more if it represents an attractive opportunity.

Uber also has 5.6% options in Delivery Hero, according to a statement by the latter. 

Delivery Hero appears to be a perfect fit for Uber if it wants to compete with DoorDash internationally. The Frankfurt-listed company has operations in more than 60 countries through sub-brands such as Foodpanda, Foody, and Foodora, to name a few. On the other hand, rival DoorDash has a subsidiary, “Wolt,” which has a strong presence in Europe.

What Retail Thinks About UBER

On Stocktwits, retail sentiment toward UBER stock turned ‘neutral’ over the last 24 hours, with many users noting the Bloomberg report.

One user on the platform said that Uber is “quietly leaning deeper into the Delivery Hero story.”

Another user said that this could be a “huge catalyst for the stock.”

UBER stock has lost more than 11% so far this year, and more than 17% over the last 12 months, underperforming the benchmark S&P index.

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