TAIPEI (TVBS News) — An Uber spokesperson expressed disappointment on Wednesday (March 12) after Uber terminated its US$950 million (NT$31.2 billion) acquisition bid of Delivery Hero's foodpanda business in Taiwan due to regulatory hurdles. Uber said it respected the decision without plans to appeal. Uber will face a US$250 million (NT$8.2 billion) termination fee.
Uber first announced its acquisition of foodpanda in May last year. Uber submitted comprehensive documentation for the acquisition on Nov. 8, initiating the review process. By Dec. 9, Taiwan's Fair Trade Commission (FTC, 公平交易委員會) expressed concerns about the potential increase in market concentration, labeling the case as a significant issue of public interest.
The FTC blocked the merger last December, citing antitrust concerns. The commission feared that combining the two major platforms would result in a 90% market share, potentially leading to price increases.
Despite the setback, Delivery Hero told Reuters that the equity purchase transaction involving US$300 million (NT$9.8 billion) in newly issued shares to Uber will proceed unaffected. The Asian delivery market has rebounded from the post-pandemic slump, yet companies face intense competition and thin profit margins, needing to offer discounts to attract budget-conscious consumers.
Uber had expressed readiness to present binding commitments and conditions to the commission, aiming for a mutually beneficial outcome for Taiwan. However, the FTC ultimately determined that the competition concerns were too substantial to approve the merger.