Saudi Arabia’s food delivery scene reshaped by Uber buyout
Saudi Arabia’s burgeoning food delivery scene is being reshaped once again, as Uber consolidates its position in the kingdom’s app-based transport market.
The U.S. rideshare and delivery giant is taking direct control of some of the Middle East’s biggest food and grocery delivery networks via its $14.8 billion takeover deal for Berlin-based Delivery Hero.
In Saudi Arabia, the deal brings market leader HungerStation, which operates in more than 100 cities across the kingdom and Bahrain, under Uber’s umbrella. The Public Investment Fund has direct exposure via its 3.58% stake in Uber, which is valued at about $5.24 billion, Arab News reports.
Combined with its ride-hailing service, the deal effectively turns Uber into the biggest player in Saudi Arabia, where its main competitors, Jahez Group and Keeta, are also aggressively expanding. Industry commentators expect it will herald further consolidation as players look to strengthen their market positions.
Uber will also swallow a majority stake in Dubai-listed Talabat, a business which has transformed the food industry across the Middle East since its launch in Kuwait 20 years ago. Talabat was valued at more than $10 billion when Delivery Hero listed 20% of its shares in a $2 billion IPO in 2024.