Uber is in advanced talks to acquire Delivery Hero’s Africa business, potentially including Jumia Food in Nigeria, Kenya, and Egypt. Delivery Hero, valued at €10B, has struggled with profitability in Africa despite 20% YoY growth in GMV. Uber Eats, already live in 8 African cities, sees synergy in scaling via acquisition rather than organic expansion. Local players like Bolt Food and Glovo are scrambling to secure partnerships to avoid being outmaneuvered.

Africa’s food delivery market is fragmented but growing fast, with a $5B TAM by 2025. Uber’s move would consolidate its lead, leveraging Delivery Hero’s 100K+ restaurant network and last-mile logistics. For Delivery Hero, exiting Africa could shore up its €1.5B EBITDA target by 2025, but it risks ceding ground to Uber’s vertically integrated model. Regulators may push back if the deal reduces competition in key markets like Nigeria, where Jumia Food holds 40% share.

Uber wins scale and data dominance. Delivery Hero gains liquidity but loses Africa’s long-term upside. Local startups like ChopChop (backed by TLcom) face extinction unless they pivot to niche markets. Consumers may see higher fees as Uber rationalizes subsidies.

Expect a counterbid from Bolt, which raised $700M in 2023 and has deeper roots in Africa’s ride-hailing ecosystem. Regulatory hurdles in Nigeria and South Africa could derail or delay the deal. Watch for Jumia’s stock reaction it still owns 20% of Jumia Food.