Uber Technologies is preparing to enter Europe’s corporate bond market for the first time, hiring banks to arrange a debut euro-denominated bond offering as the ride-hailing and delivery company seeks to expand its presence across the region and finance a major acquisition.
The planned transaction would mark a significant step in Uber’s use of European debt markets. The company has selected banks for a multi-tranche euro bond deal, according to people familiar with the matter cited by Bloomberg. The offering comes at a time when US technology companies are increasingly turning to European investors to raise debt, taking advantage of deep demand for highly rated corporate bonds.
Uber’s move also comes shortly after the company agreed to acquire Delivery Hero in a transaction that values the German delivery company at about $14.8 billion. Under the agreement announced in July, Uber offered €41.50 in cash for each Delivery Hero share, while the transaction was structured to expand Uber’s mobility and delivery operations into substantially more markets.
The Delivery Hero transaction is expected to be financed through a combination of Uber’s existing cash and new debt. Uber has already secured a committed bridge facility of approximately €14 billion and said the financing structure is designed to preserve its investment-grade credit rating, with gross leverage expected to remain below two times.
The new euro bond offering could therefore provide Uber with another source of long-term financing as it manages the costs associated with its European expansion. Rather than relying exclusively on bank loans or short-term bridge financing, issuing bonds would allow the company to lock in funding from institutional investors and potentially diversify its debt base.
The timing is notable because European credit markets have become increasingly important to large US technology companies. Google, Amazon and Microsoft have all increased their presence in the euro-denominated bond market as they raise money for massive investments in artificial intelligence and infrastructure. Reuters reported last week that major US technology companies already account for almost 10% of gross new euro-zone corporate bond issuance, despite holding only about €40 billion of outstanding bonds in the region.
That growing supply has raised concerns about whether the European bond market can absorb the increasing borrowing requirements of US companies without pushing financing costs higher. An ECB research blog cited by Reuters warned that a surge in technology-sector debt could crowd out other corporate and sovereign borrowers and potentially increase borrowing costs across the market.
Uber’s arrival adds another major US corporate borrower to that market, although its financing needs are different from those of the hyperscalers. Uber does not face the same multibillion-dollar annual spending requirements associated with artificial intelligence data centers, but its strategy has increasingly involved acquisitions, international expansion and investment in autonomous transportation.
The Delivery Hero acquisition is central to that strategy. Uber said the deal would extend its combined mobility and delivery platform to 99 markets, with the businesses involved generating $236 billion in combined gross bookings in 2025. Uber expects the transaction to be accretive to adjusted earnings per share after closing and to generate high-single-digit percentage earnings accretion by the third year.
The transaction would also significantly increase Uber’s European footprint. As part of the deal, Uber has committed to invest €2 billion in Germany over five years, including investment in its corporate workforce and autonomous vehicle deployments and partnerships with the German automotive industry. Uber has also promised to retain Delivery Hero’s headquarters and maintain its Berlin workforce without changes through at least 2029.
However, taking on additional debt creates its own risks. Higher borrowing costs could reduce some of the financial benefits of the acquisition, particularly if European interest rates remain elevated. The European Central Bank is facing renewed inflationary pressure from higher energy prices, with markets expecting further monetary tightening this month.
Credit investors are therefore likely to examine Uber’s leverage, cash generation and acquisition-related spending closely. The company has emphasized that strong free cash flow should allow it to maintain its investment-grade profile, but the scale of its expansion means investors will remain focused on whether expected synergies and earnings growth materialize.
The euro bond market could nevertheless be attractive for Uber because European institutional investors have a large appetite for investment-grade corporate debt. A successful debut could establish a benchmark for future euro issuance and give Uber greater flexibility when financing acquisitions or other European investments.
The company is also entering the market at a time when global bond yields are elevated. Rising oil prices, geopolitical tensions and expectations for higher interest rates have pushed borrowing costs higher across major markets. European companies and governments are already facing increased financing expenses, making the pricing of Uber’s debut deal particularly important.
For investors, the bond sale will offer an opportunity to assess how markets value Uber’s creditworthiness as the company becomes more aggressive with acquisitions and expansion. For Uber, the transaction represents more than a new source of financing. It is another indication that the company increasingly sees Europe as a central part of its long-term growth strategy.
If demand for the bonds is strong and pricing remains competitive, Uber could return to the euro market in the future. Its first offering will therefore be closely watched by investors not only as a standalone transaction but also as a potential signal of how much additional corporate debt the European market can absorb from major US companies.
