Business

Uber in talks to buy food delivery rival Deliveroo to conquer European market

Uber is looking to expand their food delivery service Uber Eats.This can be said, as the San Francisco based tech giant is in talks to acquire a London based rival food app Deliveroo for £1.5bn reportedly.

Deliveroo is one of Europe’s biggest successful startups, founded in 2013 by American businessman Will Shu, and Greg Orlowski. Deliveroo procures contract employees as couriers who deliver food from local restaurants in around 200 cities all over the UK, the European Union, Asia, and Australia. The firm has expanded in 11 Countries in almost 5 years. The scaleup is also one of the prime rivals of Uber’s own food delivery service Uber Eats.

Deliveroo: Successful startup

The hottest delivery startup in the UK, Deliveroo raised €409 million in venture funding, last year. Reports suggest that Deliveroo would be interested in selling only for a considerably higher price than its current valuation.

Being an avid rival to companies such as Uber Eats and Just Eat, Deliveroo said in July an initial public offering is not on the cards but reportedly it is believed that the company is preparing for IPO.

Uber Food Delivery Business

Uber Chief Executive Officer, Dara Khosrowshahi has made the company’s food delivery business a top priority before the planned IPO in the second half of 2019. That’s why the company is looking forward to other acquisitions too. Reportedly, Uber is also in talks with Middle Eastern ride sharing rival Careem. After selling its ride-hailing businesses in Southeast Asia, China and Russia, they are trying different strategies and is eager to buy local competitors, rather than selling its remaining local businesses.

Stay tuned to Silicon Canals for more updates in the tech startup world.

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Silicon Canals Editorial Team

The Silicon Canals Editorial Team produces content across our three editorial pillars: technology and business, power and investigations, and human systems. We chronicle the systems that shape our lives, from the global infrastructure of technology to the internal infrastructure of the human mind. Articles reflect our team's collective editorial process, sourcing, drafting, fact-checking, editing, and review, rather than a single journalist's writing. Silicon Canals takes editorial responsibility for content under this byline. For more on how we work, see our editorial policy.