TAIPEI (TVBS News) — In a landmark deal, Uber announced on Tuesday (May 14) its acquisition of Delivery Hero's foodpanda in Taiwan for US$950 million (approximately NT$30.7 billion), setting the stage for one of Taiwan's most significant international mergers.
Expected to be finalized in the first half of 2025, this acquisition will combine the strengths of Uber Eats, the second-largest delivery service in Taiwan, with foodpanda, the market leader, effectively controlling over half of the island's delivery market.
The Fair Trade Commission's Deputy Commissioner, Chen Chih-min, stated that the merger would be reviewed based on market concentration, pricing power, synergistic effects, and market benefits.
If approved, the merger will allow the Uber Eats platform to offer foodpanda's services, expanding its reach to over 100,000 partner stores and over 3 million users. This move comes amid concerns from consumers about potential price increases following the merger of the two largest delivery platforms in Taiwan.
The competition between Uber Eats and foodpanda in Taiwan has been fierce, with each platform having advantages in different regions.
According to a survey by the Market Intelligence & Consulting Institute (MIC), foodpanda and Uber Eats were the top two delivery services used by Taiwanese people last year.
Despite the competition, Uber's acquisition includes not only a US$950 million cash payment for foodpanda but also a US$300 million purchase of newly issued ordinary shares of Delivery Hero.
Delivery Hero's CEO and co-founder, Niklas Östberg, mentioned that selling foodpanda's Taiwan business to Uber aims to focus resources on other global markets. Meanwhile, Uber's Senior Vice President of Delivery, Pierre-Dimitri Gore-Coty, highlighted Taiwan's competitive market, noting that food delivery platforms currently represent only a tiny fraction of the country's overall food delivery landscape.
As the deal awaits regulatory approval, foodpanda will continue its operations in Taiwan. Upon completion, foodpanda's consumers, business owners, and delivery partners in Taiwan will transition to the Uber Eats platform, marking a significant shift in the island's food delivery services landscape.