Uber has paused most of its European food delivery expansion just months after announcing it, shifting focus to acquiring rival Delivery Hero instead. The company will not launch in five of seven targeted countries including Austria, Norway and Greece, despite originally planning to generate $1bn in additional gross bookings over three years.

The move follows Uber's rejected €10bn bid for the Berlin-based company in May, with the acquisition facing regulatory hurdles. Prosus, Delivery Hero's largest shareholder, is considering expanding its stake, which could complicate any takeover. EU regulators are expected to scrutinize the deal closely given market overlaps.

Uber Eats has gained ground in UK, France and Germany markets but lost significant share in the US to DoorDash, which now holds 64 per cent market share compared to Uber's 31 per cent. The company faces stiff competition from DoorDash-owned Wolt and Deliveroo across European markets.

The expansion pause coincides with the departure of global delivery head Susan Anderson after just 12 months, though Uber claims technical issues affecting restaurant orders had no material impact. This strategic shift signals Uber's preference for acquisition over organic growth to scale its international food delivery operations.