Uber's $700M Stake in Trendyol GO: A Strategic Play or a Risky Gamble in Turkey?

Uber’s $700 million cash acquisition of an 85% controlling stake in Turkey’s leading food and grocery delivery platform, Trendyol GO, marks a bold move into one of Europe’s fastest-growing markets. The deal, expected to close by late 2025 pending regulatory approval, positions Uber to capitalize on Turkey’s booming digital delivery sector while facing headwinds from economic uncertainty and regulatory hurdles.

Why Turkey? The Market Opportunity

Turkey’s delivery sector is a magnet for tech giants. Trendyol GO, which serves over 90,000 restaurants and 19,000 couriers, processed over 200 million orders in 2024—amassing $2 billion in gross bookings, a 50% year-over-year surge. This scale underscores the market’s potential. With Uber currently limited to ride-hailing in Turkey, acquiring Trendyol GO gives it a direct entry into a sector projected to grow at 15% annually through 2027.

The strategic rationale is clear: Uber aims to diversify its revenue streams beyond its core ride-hailing business, which has faced saturation in mature markets like the U.S. Competitors like DoorDash are already expanding globally, and Uber’s leadership sees Turkey as a critical growth lever.

Financial and Operational Synergies

The $700 million price tag for an 85% stake suggests Uber is betting on scalability. Trendyol GO’s existing infrastructure—its courier network and restaurant partnerships—could be integrated with Uber Eats’ technology over time, potentially reducing costs and improving efficiency. However, the deal’s valuation hinges on whether Uber can replicate its U.S. success in a market with unique challenges.

Risks and Regulatory Hurdles

The deal isn’t without pitfalls. Regulatory approval remains uncertain, especially after Uber’s failed $950 million bid for Taiwan’s Foodpanda due to antitrust concerns. Turkey’s market also faces headwinds: rising inflation, political instability, and U.S. tariffs on Turkish imports—leftover from the Trump era—could crimp consumer spending.

Moreover, Trendyol GO’s parent company, Trendyol Group (backed by Alibaba), retains a 15% stake, which may complicate long-term governance. For Uber, the acquisition also comes as its Q1 2025 earnings report (projected at 51 cents EPS on $11.6 billion revenue) underscores pressure to demonstrate growth.

The Bigger Picture: Uber’s Global Expansion Strategy

This move aligns with Uber’s broader pivot toward delivery. In 2024, Uber Eats generated $16 billion in revenue, but its European expansion has lagged behind rivals. By acquiring a local leader like Trendyol GO, Uber avoids the costly mistake of building a network from scratch.

However, the deal’s success depends on execution. Integrating systems without disrupting Trendyol GO’s brand—a critical asset in Turkey—will be key. If Uber can leverage its scale while preserving local relationships, the acquisition could pay off handsomely.

Conclusion: A Calculated Gamble with High Upside

Uber’s $700 million bet on Trendyol GO is a calculated risk with significant upside. Turkey’s delivery market is undeniably attractive, and Trendyol GO’s 50% annual growth in gross bookings (to $2 billion) suggests strong demand. If Uber can navigate regulatory hurdles and economic headwinds, this deal could become a cornerstone of its global expansion.

Critically, the terms—85% for $700 million—appear reasonable given Trendyol GO’s scale. For context, DoorDash spent $1.2 billion to acquire Deliveroo in 2023, which had similar metrics at the time. Meanwhile, Uber’s stock (currently trading around $35, up 20% YTD) reflects investor optimism about its delivery ambitions.

The real test will be whether Uber can replicate its U.S. playbook: using delivery to drive app usage and cross-selling rides, food, and groceries. If successful, this deal could turn Turkey into a profit center and alleviate pressure from slowing growth in core markets. For now, the move is a strong signal that Uber remains aggressive in pursuing global dominance—one plate at a time.