Uber Technologies (UBER) has increased its stake in German food delivery company Delivery Hero (DE:DHR) as it looks to expand beyond the U.S. market.
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The ride-hailing giant now owns 19.5% of Delivery Hero. That increases Uber’s stake from the 7% it held previously when it bought $318 million worth of Delivery Hero shares. Uber Technologies is trying to expand beyond the U.S. and grow its presence in Europe.
“Uber may or may not acquire further voting rights or dispose of shares in Delivery Hero SE within the next 12 months by means of purchases or other means,” according to the company’s statement. “Currently Uber has no intent to acquire 30% or more” of Delivery Hero’s voting rights, it added.
Ride-Hailing and Delivery Competition
San Francisco-based Uber has been actively making acquisitions overseas to strengthen its position internationally as domestic U.S. rivals such as DoorDash (DASH) also look to grow abroad. Delivery Hero currently has a presence in more than 60 countries.
Uber’s increased investment in Delivery Hero comes with the German company under pressure. CEO Niklas Östberg recently announced plans to step down after an activist investor increased its stake in the company and called publicly for his departure.
Is UBER Stock a Buy?
Uber stock has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 26 Buy and two Hold recommendations issued in the last three months. The average UBER price target of $105.19 implies 41% upside from current levels.
