Post by Erdinc ERGENC

UPDATED M&A ALERT! UBER Acquires 85% Stake in Trendyol GO for USD 700m Uber announced that it has entered into an agreement with Trendyol Group to acquire an 85% controlling stake in its Trendyol GO, an online meal and grocery delivery business in Turkiye for approximately USD 700m in cash on a cash and debt free basis, according to a SEC filing below. The filing noted that Trendyol GO delivered more than 200 million orders in 2024, generating USD 2bn in gross bookings, up more than 50% from the prior year. The acquisition of Trendyol GO is subject to regulatory approval (Turkish Competition Authority) and other closing conditions and is expected to close in 2H25. Trendyol GO platform serves customers across Türkiye with groceries and meals from more than 90,000 restaurants and markets via 19,000 couriers, as per a joint press release from the companies. Yemeksepeti is the largest meal delivery service in Turkey, backed by Delivery Hero. Getir is another player in the grocery and meal delivery business, while the dominant retail player Migros has also invested in the business with Migros Sanal Market (Migros Yemek) from its own kitchen. And Tıkla Gelsin is another one that serves nine restaurants including Burger King, Popeyes and Subway of TAB Gıda backed by Ata Holding. There is a stiff competition among the online platforms in Turkey. Personally, I should admit that I was a bit surprised seeing such a high deal value but the valuation reflects the growing business opportunity as well as the result of overvalued TRY. Also, I should note that Alibaba Group had acquired a majority stake, over 70% in 2018 for a consideration of over USD 700m and investing additional USD 350m through capital increases and raising its stake to 86.5% until April 2021, which valued the company at USD 11bn, a decacorn valuation. Later in August 2021, this time a USD 1.5bn - USD 2bn round, for %9 stake, led by General Atlantic and SoftBank Group Corp. while Princeville Capital, ADQ and Qatar Investment Authority also invested in the e-retailer with a USD 16.5bn valuation. And in November, Actera Group also invested in Trendyol, in an undisclosed deal. Uber in the past had targeted local cab hailing operations but later decided to grow organically in the market with the black van services. However after seeing attacks from taxi drivers it decided to hire yellow taxis and conduct its black taxi business in a low profile mode. The Trendyol GO deal will probably be the second biggest M&A transaction in 2025, if its approved and finalised. The biggest one was a growth capital raise by Dream Games, with a USD 2bn round which is a mix of equity, debt and secondary deal.