TAIPEI (TVBS News) — Uber announced Tuesday (May 14) it has reached an agreement to acquire the Taiwan delivery operations of foodpanda, a subsidiary of Delivery Hero, for NT$30.7 billion (US$950 million) in cash.
The deal, which is subject to regulatory approval, is expected to be completed in the first half of next year. In addition, Uber plans to purchase US$300 million in newly issued common shares of Delivery Hero.
Delivery Hero said it will continue to operate foodpanda in Taiwan and provide the best service to its consumers and partners until the transaction is completed. After the deal is finalized, foodpanda's local consumers, merchants, and delivery partners in Taiwan will transition to the Uber Eats platform.
Niklas Östberg, CEO and co-founder of Delivery Hero, said the acquisition offers an exciting prospect for foodpanda in Taiwan as it allows the company to focus its resources on operations in other global markets.
Uber Eats said consumers will benefit from the combined strengths of Uber's wider selection in northern Taiwan and major cities, and foodpanda's relative advantages in southern Taiwan and smaller cities. If the acquisition is approved and completed, it is expected to bring more orders to merchants and more opportunities for delivery partners.
Uber said that once the deal is completed, it will be one of the largest international acquisitions in Taiwan's history outside of the semiconductor industry.
Uber's decision to increase its investment in Taiwan reflects the country's attractiveness for sustained long-term investment by international companies and investors.