Sep 21, 2018
Uber to partner with or buy Deliveroo for up to $4bn
Uber has set its sights on a partnership with Deliveroo, the London-based food delivery app, and is discussing options ranging from a minority investment to a full takeover at a valuation of up to $4bn. Four people close to the two companies said Deliveroo's main investors, who include Fidelity and T Rowe Price, are not seeking a full sale but may be more interested in an investment or partnership. No firm valuation has been reached, but two people familiar with Deliveroo, which raised $385m of investment in 2017 at a $2bn valuation, said the company would want a price of above $4bn. Meanwhile, one person close to Uber said the ride-hailing app is willing to make a significant investment but would not bid more than $4bn. "The price is always going to be a sticking point," said one investor in Deliveroo. In the UK, where Deliveroo has operated since 2013 and UberEats launched in 2016, Deliveroo delivers from a network of 10,000 restaurants, while UberEats has 7,000. Deliveroo does not operate in the US, but it would offer Uber the chance to grow its European business rapidly. Over the course of 2016, Deliveroo spent more than £13m on equipment for its drivers and building out its network of "Dark kitchens", restaurant sites that are not open to the public and only exist to serve Deliveroo customers.
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