Uber cuts 3,300 jobs and pushes ahead with the Delivery Hero takeover.

Uber is cutting around 3,300 jobs worldwide. That corresponds to about ten percent of the workforce. The mobility provider aims to streamline leadership structures in particular and merge business units. At the same time, the company is advancing its robotaxi strategy and working on the multibillion-dollar acquisition of Delivery Hero.

Fewer management levels at Uber

As part of the restructuring, the number of leadership positions is to fall by 20 percent. In addition, Uber wants to halve the number of teams with only one or two members. Organizational levels that are more than seven levels away from the Chief Executive Officer Dara Khosrowshahi should be eliminated.

Furthermore, the company plans to merge areas from engineering, science and delivery. The previously separate delivery businesses for restaurants, retail and direct delivery should be organizationally consolidated.

According to the company, the reason for the restructure is the increased organizational complexity that has accompanied growth in recent years. Uber also wants to tighten the office attendance requirement. In the future, only about one percent of employees should permanently work remotely. The existing hybrid arrangement with three office days per week should be implemented more consistently.

The announcement initially led to rising share prices. Uber's shares rose about two percent in pre-market trading. Since the start of the year, the stock had been down nearly nine percent, according to the source text.

Uber Eats with Diverging Market Developments

Delivery business is also developing differently depending on the market. In the United Kingdom, France, and Germany, Uber Eats is gaining market share according to the source text. In the United States, the provider, by contrast, loses ground to DoorDash. Data from YipitData shows that DoorDash has around 64 percent market share there, while Uber reaches 31 percent.

At the same time, the group plans to invest more than ten billion dollars in expanding its robotaxi network. Self-driving services are to be offered in at least 15 cities as early as this year. Uber will compete with, among others, Waymo and Tesla.

In London, Uber partner Wayve, according to the source text, has received approval from the relevant transport authority for a commercial robotaxi operation with a safety driver.

Takeover bid for Delivery Hero under way

Parallel to the corporate restructuring, Uber is working on acquiring Delivery Hero. After approval of the offer document by the financial supervisory authority, Uber offers shareholders €41.50 per share in cash. That corresponds, according to the source text, to a valuation of around €13 billion. The offer price is thus about 108 percent above the share price prior to the talks becoming public in the spring.

The acceptance period has been running since the end of August and will run until early November. The minimum acceptance threshold is set at 50 percent plus one share. Through its own holdings and a binding commitment from major shareholder Prosus, Uber is already credited with roughly 53 percent according to the source text.

Merger-control approvals in several countries are still outstanding. The settlement of the transaction and the payout are therefore expected in the second half of 2027. For three years, Uber will not enter into a control and profit transfer agreement.

If the deal closes successfully, the number of markets where Uber offers both mobility and delivery services would rise from 34 to 58.