Shares in Uber Technologies ($Uber) looked less tasty today despite hailing a deal to buy Turkish delivery business Trendyol GO for $700 million.
Food and Groceries
Uber stock was down 0.85% despite entering into a deal with Turkish e-commerce firm Trendyol Group to acquire an 85% stake in its Trendyol GO online food delivery business.
It is a cash-only agreement.
Trendyol GO delivered more than 200 million orders in 2024, generating $2 billion in gross bookings, up more than 50% from the prior year. It also delivers groceries and prescriptions often within a 30-minute time window.
The acquisition of Trendyol GO is subject to regulatory approval and other closing conditions and is expected to close in the second half of 2025.
Reports that Uber was interested in buying Trendyol first emerged in April, with sources suggesting that the company was not just interested in gaining market share in Asia.
“Uber is not just buying a food app — they’re buying a logistics arm fused into the DNA of one of Turkey’s most valuable tech companies,” said a regional analyst based in Dubai as quoted by the CTOL Digital Solutions website. “The real story here is infrastructure and ecosystem.”
Another analyst said: “You’re essentially acquiring a tech-driven FedEx tailored for emerging markets.”
Delivery Consolidation
However, it won’t have its own way with strong rivals like Getir and Yemeksepeti already on the ground in Turkey.
The move comes on the same day that food delivery rival DoorDash (DASH) announced a final cash offer to acquire UK-listed Deliveroo, valuing the company at approximately £2.9 billion.
It is further indication of consolidation in the market after Prosus completed a €4.1 billion deal to take European group Just Eat Takeaway private in March.
Despite healthy demand for food takeaways and meal deliveries, the market is still off the peaks reached during the pandemic when lockdowns forced people to feast at home and many new ventures were formed to take advantage of the opportunity.
Still, the global food delivery industry is expected to grow to $213 billion by 2030, from around $120 billion today.
Is UBER a Good Stock to Buy Now?
On TipRanks, UBER has a Strong Buy consensus based on 30 Buy and 3 Hold ratings. Its highest price target is $115. UBER stock’s consensus price target is $90.20 implying an 6.39% upside.
