Uber to Acquire Delivery Hero’s Foodpanda Business in Taiwan for $950 Million
Uber Technologies will acquire Foodpanda's Taiwan business from Delivery Hero for $950 million in cash.
The deal is expected to close in the first half of 2025, pending regulatory approval.
Delivery Hero aims to refocus its resources on markets where it can have a more substantial impact.
Niklas Östberg, CEO of Delivery Hero, emphasized the need to concentrate on other parts of their global footprint.
Pierre-Dimitri Gore-Coty, senior VP of delivery at Uber, highlighted the competitive nature of Taiwan's market and the potential for Uber's strengthened presence.
The acquisition is set to reshape Taiwan's online food delivery sector, where digital platforms still represent a small fraction of the overall food delivery market.
Foodpanda is a major player in Asia, operating in markets such as Singapore, Malaysia, Thailand, The Philippines, and Hong Kong.
Data shows Foodpanda holds a 52% share by order volume in Taiwan, compared to Uber Eats' 48%.
The acquisition raises potential monopoly concerns, necessitating regulatory scrutiny to ensure fair competition and consumer protection.
The deal will undergo thorough regulatory review due to its potential impact on Taiwan's food delivery market.
Despite selling its Taiwan business, Delivery Hero retains its Foodpanda operations in Southeast Asia, highlighting strategic complexities in the region.