Uber (NYSE:UBER) is set to acquire Delivery Hero’s (DE:DHER) foodpanda delivery business in Taiwan for $950 million in cash. The acquisition marks Uber’s significant expansion in Asia, and it expects to complete the transaction in the first half of 2025.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Additionally, Uber will invest $300 million in newly issued ordinary shares of Delivery Hero.
Delivery Hero will continue to operate foodpanda Taiwan until the transaction is completed. After the deal is completed, foodpanda’s local consumers, merchants, and delivery partners will transition to Uber Eats, its food ordering and delivery platform. Uber already has a presence in Taiwan, which positions it well to enhance the substantial local operations developed by Delivery Hero and foodpanda over the years.
Uber is Strengthening Uber Eats Business
Uber, which provides ride-hailing, food delivery, courier, and freight transport services, is strengthening its Uber Eats business. The company is increasing product selection on Uber Eats, focusing on pricing strategy, and improving the quality of the service.
Moreover, it is aggressively investing in marketing and partnering with leading online platforms to accelerate growth.
Thanks to its efforts, the gross booking and profitability at Uber Eats have marked significant growth in Q1.
Is Uber a Good Stock to Buy Today?
Uber stock is up about 73% in one year. Despite this significant growth, Wall Street analysts see further upside potential and maintain a bullish stance.
Uber stock has a Strong Buy consensus rating based on 30 Buy and one Hold recommendation. Analysts’ average price target on UBER stock is $89.21, implying 35.13% upside potential from current levels.
