Uber invests in Delivery Hero as part of deal for Foodpanda Taiwan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2024
0mins
Source: SeekingAlpha
- Uber's Acquisition of Foodpanda Taiwan: Uber Technologies acquired Foodpanda Taiwan from Delivery Hero SE for $950 million, aiming to combine global expertise with local coverage and relationships.
- Financial Details: Foodpanda Taiwan generated $2.0 billion in gross bookings, had positive EBITDA, and is expected to generate around $150 million of EBITDA post-synergies within the first 12 months after closing.
- Investment in Delivery Hero: Uber also agreed to purchase $300 million in newly issued ordinary shares of Delivery Hero at €33 per share, with Delivery Hero planning to use the proceeds to reduce net debt.
- Market Reaction: Uber's shares traded lower, while Delivery Hero's shares surged by more than 24% in Frankfurt trading following the announcement.
- Analyst Views: Analysts have mixed opinions on the deal, with concerns about potential antitrust reviews due to creating a food delivery monopoly and the impact on Uber's delivery gross bookings growth.
Analyst Views on UBER
Wall Street analysts forecast UBER stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UBER is 114.67 USD with a low forecast of 73.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
27 Buy
3 Hold
1 Sell
Strong Buy
Current: 82.560
Low
73.00
Averages
114.67
High
150.00
Current: 82.560
Low
73.00
Averages
114.67
High
150.00
About UBER
Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
