Uber pauses delivery expansion in Europe as it targets German rival

Uber has put most of its planned food delivery expansion in Europe on hold just months after it was announced as its bid to acquire German rival Delivery Hero intensifies, the Financial Times has reported.

Citing two people familiar with the matter, the paper said that it no longer plans to launch in five of the seven countries it initially targeted this year, including Austria, Norway, and Greece.

This decision comes shortly after Uber announced its plan to deliver an additional $1 billion in gross bookings over the next three years, of which its European expansion was a central part.

However, it is maintaining its bid for Delivery Hero, after its initial €10 billion offer was rejected in May. The company’s current largest shareholder, South Africa’s Prosus, which also owns Just Eat, is considering expanding its stake in the company in a move that could prevent Uber’s acquisition.

Any deal is expected to face scrutiny from EU regulators, according to the FT.

Uber told the paper that it plans to halt expansion after the “huge success” of launches in Finland and Denmark, and plans to “focus on continuing the momentum” in existing markets.

An industry figure told the FT that the pause on expansion could ease pressure on an antitrust review by the EU, which is expected to take place if Uber were to acquire Delivery Hero due to the large overlap in their markets.

Uber has concurrently been expanding its US operations, partnering with major retailer Ahold Delhaize in May to roll out on-demand delivery from nearly 2,000 stores across the Northeast and Mid-Atlantic.