Uber to Acquire Foodpanda’s Taiwan Operations for Whopping $950 Million Cash

By Trisha Andrada

May 14, 2024 04:05 AM EDT

Uber announced on Tuesday a $1.25 billion deal to acquire Delivery Hero's foodpanda company in Taiwan as well as additional shares in the German firm, boosting the delivery specialist's liquidity as it faces increased competition in Asia.

The deal was announced via a joint statement. Pending regulatory clearance is anticipated to conclude in the first half of 2025.

Uber Wants to Grow Presence in Taiwan's Competitive Food Delivery Market

While online food delivery systems are still in their early years in Taiwan, Uber's senior vice president of delivery, Pierre-Dimitri Gore-Coty, stated that the purchase will help the company expand in the highly competitive industry.

"Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners," he stated.

An additional agreement between the two parties states that Uber will buy $300 million in newly issued ordinary shares of Delivery Hero.

Delivery Hero's Foodpanda Shifts Attention to Expanding Global Reach

Delivery Hero's co-founder and CEO, Niklas Östberg, has said that the firm would direct its efforts towards other areas of its worldwide presence where it believes it can make the most significant difference for consumers, suppliers, and riders.

Singapore, Malaysia, Thailand, the Philippines, and Hong Kong are just a few of the Asian regions where Foodpanda is a prominent online grocery delivery platform, according to CNBC.

As part of its reorganization, Delivery Hero planned to sell its foodpanda company in several Southeast Asian regions. It said in February that it had ended negotiations about selling such operations.

Singapore's competition authority announced last month that it had investigated the possibility of a merger between Grab Holdings and Delivery Hero, raising concerns about competition in the food delivery business, but had closed the matter after the discussions had faltered.

Last month, Delivery Hero stated that it will continue to look into any prospective deals, Reuters reported.