Tuesday, June 25, 2024

Uber To Acquire Delivery Hero’s Foodpanda Business In Taiwan For $950 Million

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Uber Technologies on Tuesday announced that it will acquire Delivery Hero’s Foodpanda food delivery business in Taiwan for $950 million in cash. The deal, if it goes through, would be one of Taiwan’s largest acquisitions outside its core semiconductor sector.

The acquision is subject to regulatory approval and other customary closing conditions by early 2025, as Uber and Delivery Hero are the two dominant players in the food delivery market.

Chen Chih-min, Taiwan’s Fair Trade Commission Vice-Chair, said the approval depends on whether the companies involved in the merger abuse their power to hinder or exclude market competition. Chen noted that both companies have very high market shares in Taiwan, which combined would have an 80% market share, so there are heightened concerns regarding competition restrictions, local media reported.

Asia is Germany-based Delivery Hero’s biggest market, generating $4 billion in revenue in 2023, accounting for 36% of its total income.

In early May, Foodpanda announced the closure of its five-year-old virtual supermarket Pandamart operations in Taiwan by the end of the month to focus on its delivery services.

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