Uber explores full takeover of Delivery Hero in Europe

Uber Technologies Inc. is exploring a potential full takeover of its European rival, Delivery Hero SE, according to people familiar with the matter. This move would significantly expand Uber's international food delivery operations as it competes with DoorDash Inc. outside the United States.

The ride-hailing giant disclosed this week that it has increased its stake in Delivery Hero, which is listed in Frankfurt. Uber now owns 19.5 percent of the company after acquiring additional shares and instruments, plus a further 5.6 percent in options. The company is working with advisers to study ways to increase its holding further and has been speaking to other Delivery Hero investors about its interest in a deal.

Morgan Stanley has reportedly helped Uber rapidly build its stake using derivatives. While Uber stated it currently has no intention to lift its stake to 30 percent or more, it noted it periodically reviews investments and could buy more if an attractive opportunity arises. Crossing certain ownership thresholds may require antitrust approval.

Delivery Hero's shares have risen almost 50 percent in Frankfurt trading this year, giving the company a market value of around $10.2...