Market Spotlight: What Uber’s proposed takeover of Delivery Hero could mean for Asia’s last-mile industry

Asia Pacific’s delivery market could be on the cusp of change. In mid-July, Uber Technologies proposed a takeover of Delivery Hero at €41.50 per share, representing an equity value of as much as US$14.8bn. If completed, the deal would give Uber control of Delivery Hero’s businesses across 50 markets. In Asia, these include foodpanda in Bangladesh, Cambodia, Hong Kong, Laos, Malaysia, Myanmar, Pakistan, the Philippines, and Singapore, as well as the established Baedal Minjok brand in South Korea.

The deal is expected to close in the second half of 2027. Its potential impact would be significant. The proposed acquisition would extend Uber’s global presence to 99 markets, with combined pro forma gross bookings of US$236bn, if completed. Regionally, the offer could mark the ride-hailing company’s return to Southeast Asia eight years after its exit. It could also reshape ASEAN’s on-demand services market.

The stakes are high. Asia Pacific’s same-day delivery market was valued at US$45.24bn in 2025 and is projected to reach US$70.46bn by 2031, according to Mordor Intelligence.

Within Southeast Asia, the online food delivery market was worth US$6.4bn in 2025 and is expected to reach US$21.4bn by 2034.

Growing at scale won’t be easy. But Uber’s announcement offers some insight into the playbook global platforms are using: acquire established brands, merchant networks, riders, and order density while retaining local leadership.

Higher stakes

The process won’t be easy. Maybank Investment Bank notes that Uber and Southeast Asian super-app Grab have had a non-compete agreement since 2018, when Uber took a stake in Grab. The agreement may need to be revisited if Uber completes the proposed takeover. Uber CEO Dara Khosrowshahi also stepped down from Grab’s board in early July.

Meanwhile, Grab agreed in March to acquire Delivery Hero’s foodpanda business in Taiwan for US$600m as part of its expansion beyond Southeast Asia. The Taiwan Fair Trade Commission extended its review of the deal until October 27 amid concerns about market concentration.

This raises an important question: Could Uber’s proposed Southeast Asia build-out trigger more consolidation in the region’s last-mile delivery market?

The consolidation game

The Delivery Hero announcement shows where the opportunity lies for dealmakers.

Alongside the proposed Uber deal, Delivery Hero agreed to sell businesses in 14 markets to New York-based investment firm SSW Partners. These include markets where Uber Eats and Delivery Hero already overlap.

Delivery Hero’s two-pronged sale process also highlights the role of private capital in the last-mile delivery market. Scaled, profitable, or differentiated businesses could attract interest from both strategic buyers and financial investors.

Despite the market’s size and potential, Asia has resisted the type of consolidation seen in Europe and the US, largely because of the region’s fragmented nature.

But there is clear room for consolidation. Grab and GoTo have reportedly held on-and-off merger discussions for years. The rationale is clear: a merger would be a defining moment for Southeast Asia’s M&A and super-app market. It could also create a regionally and globally competitive platform.

Delivery and super-app companies are increasingly prioritizing profitability, capital discipline, and higher margins. As a result, divestments, acquisitions, regional carve-outs, portfolio rationalization, market exits, and partnerships could all be on the table.

How should dealmakers position themselves?

• Buyers and advisors need to examine ownership links, market concentration risks, and regulatory exposure early
• Potential carve-outs need standalone financials, clear operational boundaries, and an understanding of shared technology, contracts, and data
• Sellers should prepare for more than one possible outcome: a strategic sale, sponsor-backed carve-out, partnership, or market exit
• Advisors also need to watch smaller, ambitious companies seeking market share and differentiation for potential dealmaking opportunities

Asia’s last-mile delivery sector is maturing. If completed, Uber’s proposed takeover of Delivery Hero could accelerate consolidation as global platforms target local champions and private capital pursues scaled, differentiated businesses.