Uber’s Strategic Gambit in Turkey: A Bold Move into High-Growth Markets

The $700 million acquisition of an 85% stake in Trendyol GO by Uber marks a pivotal moment in the global food delivery sector. This deal thrusts Uber deeper into emerging markets, where growth is robust and competition is intensifying. For Turkey, it signals a strategic pivot for a country where e-commerce and food delivery are still maturing but poised for explosive expansion.

Why Turkey? Why Now?
Trendyol GO, the food and grocery delivery arm of Alibaba-backed Trendyol Group, is no minor player. With 90,000 partner restaurants and markets, 19,000 couriers, and 200 million orders in 2024—a 50% year-on-year surge—its scale underscores Turkey’s untapped potential. Uber’s entry here is a calculated bet on two dynamics: the $2 billion gross bookings Trendyol GO generated in 2024, and the broader Turkish economy, which grew at 5.2% in 2023 (its fastest pace in a decade).

The move also reflects Uber’s strategic recalibration. In North America, Uber Eats faces stagnation amid rising competition from DoorDash and Grubhub. Meanwhile, emerging markets like Turkey offer double-digit growth rates in the food delivery sector. Consider this: ****. The contrast is stark, with emerging markets outperforming by a margin that justifies this bold investment.

The Deal’s Mechanics and Risks
Uber’s acquisition strategy is shrewd. It retains Trendyol GO’s independence, leveraging its local expertise and infrastructure, while gradually integrating Uber Eats’ technology and branding. This “go-local, scale global” approach has worked elsewhere, such as in Southeast Asia, where Uber partnered with Grab. However, Turkey’s market presents unique challenges.

First, regulatory hurdles. Turkey’s data localization laws and antitrust scrutiny—already wary of foreign tech giants—could complicate integration. Second, competition. Local players like Msmn (a subsidiary of Turkey’s MIGROS Group) and global rivals like Glovo are already entrenched. Third, profitability. While Trendyol GO’s order volume is impressive, the food delivery sector’s razor-thin margins mean Uber must achieve operational efficiencies quickly.

The Broader Implications
This deal is not just about Turkey—it’s a template for Uber’s global expansion. By acquiring a stake rather than building from scratch, Uber avoids the costly and time-consuming process of replicating Trendyol GO’s network. The 15% stake retained by Trendyol Group (and Alibaba) ensures local know-how stays embedded, a critical factor in navigating Turkey’s complex logistics and consumer preferences.

Moreover, the $700 million cash payment underscores Uber’s confidence in the sector’s long-term prospects. With $23.4 billion in cash and equivalents as of Q3 2024, Uber has the financial flexibility to make such bets. Yet, investors will watch closely for metrics like ****, which will determine whether this is a value-creation success or a costly misstep.

Conclusion: A High-Reward, High-Risk Gamble
Uber’s acquisition of Trendyol GO is a masterclass in targeting high-growth markets, but its success hinges on execution. The numbers are compelling: Trendyol GO’s 50% annual order growth and $2 billion GMV in 2024 suggest a market primed for scaling. However, the path to profitability is fraught with regulatory, competitive, and operational risks.

If Uber can marry its global tech prowess with Trendyol’s local footprint, it could capture a significant slice of Turkey’s $10 billion food delivery market by 2027. This would not only offset slowing growth elsewhere but also position Uber as a dominant player in a region where e-commerce adoption is accelerating. For investors, the deal is a bet on Turkey’s economic trajectory and Uber’s ability to replicate its ride-hailing success in a new vertical. The stakes are high, but the potential payoff—both financially and strategically—is enormous.

As emerging markets increasingly drive global growth, Uber’s move into Turkey is less about today’s profits and more about securing tomorrow’s dominance. The question remains: Can it deliver? The answer may shape the next chapter of the food delivery wars.