While the British deliverers Uber Eats They are protesting at the gates of the headquarters of Aldgate because of the recent cut in its delivery fee (4.76 € to 3.13 €), Bloomberg made public that the company is in a initial stage of negotiations to acquire Deliveroo. A jug of cold water for workers, who see their future could be at the mercy of a monopoly.
Deliveroo has avoided having presence in US. UU., because the US market for home delivery of food is dominated by two players: Uber Eats y GrubHub. In Europe the situation is very different. Deliveroo enjoys a ubiquitous presence in Europe, services are available in all capital cities and even 200 big cities region of. Not surprisingly so its market value has been estimated 2000 millions of dollars.
Historically Uber Eats He has struggled to compete with its rival in Europe. For example, in the UK they have not got a license deal for many years, having been relegated to the background by considering administrations judged that the services were suboptimal.
Instead of fighting counter, Uber Eats now aims to gain control of Deliveroo. He has not disclosed the amount by which the purchase would be made, as discussions are still kept private. Yes it has been revealed that the acquisition price requested by Deliveroo would be significantly higher than the market price, and not to affect the liquidity of Uber, This would prefer to make a payment by shares.
It guesses that the purchase will not be easy. On the one hand Deliveroo knows his potential in Europe. The market it serves will grow 1000% in the next twelve years, enough to stay afloat even if the other two major competitors (Uber Eats y Just Eat) They ensure leadership positions in the area.
further, Deliveroo has shown in the past a marked independence, so it is not sure at all that negotiations to a successful conclusion.
To this must be added a possible IPO of the British company, rumors which have recently been revigorizándose, after a period of calm that dates back to November 2017, when Will Shu, founder Deliveroo, an OPV was tinged "in a logical way" considering the market valuation reached.
According to Richard Clarke, analyst at brokerage Bernstein, it boils down to how large a portion of the cake is carried Shu. If the amount exceeds the value that the founder could speculate in the stock market with his 9% of actions, the sale would take its course. Otherwise, the likelihood that Uber Technologies Inc. You can get away with it are rather null.
Uber is expected to become aggressive in their negotiations and to strengthen its presence in Europe would reward the company with numerous advantages:
- Reduce competition in Europe.
- Use of the infrastructure and reputation built by Deliveroo, especially in countries like France and Spain.
- Have a app very popular mobile and integrated into the daily lives of many European urbanites.
- Reduce delivery costs by providing greater network of collaborators restaurants and a fleet of more extensive deliverers.
- Back on track towards the monopolization of the market in Southeast Asia.
- Strengthen strategies in emerging markets.
- Prevail in a market that is consolidating at a much faster pace than previously estimated.
The first reactions to the news were not waiting.
During the day on Thursday, day that the intentions communicated Uber, actions Delivery Hero fell 2.9% in the bag Frankfurt, while Just Eat PLC undergoing a nosedive whose maximum amplitude reached 10.6%. In both cases they recover their market value over hours.
Some market analysts have detected a change in strategy in Uber, perhaps motivated by the arrival of Dara Khosrowshahi to the position of executive director.
Left behind selling the Chinese market Didi ChuXing, the merger with Yandex.Taxi which aimed to provide a set higher quality service in Russia and Eastern Europe, or the most blatant case of all, the sale of its business in Singapore to Grab in exchange for a share of 27.5 in this company.
Deliveroo possible acquisitions in Europe and in the Middle East Careem point to a new path.
They have also spoken consumers. Specifically Singaporeans, that they are especially puzzled, as above overtook, with the course of action in your country Uber. First, they refolded, Grab ceding territory, and now they express their interest in returning to be present in the small island nation through Deliveroo, Grab both direct competitor as Food Panda (who have launched a marketing blitz to avoid losing relevance).
Uber advances respond to the need to properly position when you go to run your OPV during 2019. The parent company has bad results across the globe so encouraging data Uber Eats (generating benefits 27 of the 108 cities in which it operated in 2017) They leave no room for interpretation: the home delivery of food is one of the business lines that can not call into question.
If buying Deliveroo finally materializes, Uber will be given, indeed, a very important step to dominate this sector.