Key facts
- Uber has paused planned food delivery expansion in five of seven targeted European countries.
- The paused launches include Austria, Norway, and Greece.
- This strategic shift is occurring while Uber pursues a takeover of Delivery Hero.
- Denmark's competition authority has launched an investigation into Uber's acquisition of local taxi operator Dantaxi.
- The investigation into Dantaxi was triggered by complaints from competitors like Bolt.
Uber has significantly scaled back its European expansion plans, pausing launches in five of seven previously announced markets, including Austria, Norway, and Greece. The company stated this strategic shift is to "focus on continuing the momentum" in existing markets following successful entries into Finland and Denmark.
This decision comes amid deepening takeover talks for German food delivery giant Delivery Hero, which had previously rejected Uber's 10 billion euro bid. An industry source suggested that pausing expansion could help alleviate antitrust concerns surrounding a potential acquisition, particularly as Delivery Hero operates in some of the same target countries.
Adding to the headwinds, Uber faces a new antitrust probe in Denmark concerning its acquisition of local taxi operator Dantaxi. The Danish Competition and Consumer Authority launched the investigation, its first use of special powers to re-examine a completed transaction, following complaints from competitors like Uber's rival Bolt. Uber must formally register the Dantaxi acquisition by September 15, a development that could set a precedent for stricter regulatory oversight of tech giants in Europe.
Market analysts are closely watching these regulatory interventions, which represent a significant threat to Uber's growth narrative in Europe. While Uber shares have shown relative resilience, the long-term implications of increased regulatory scrutiny across the continent remain a key concern for investors.