Uber Technologies will acquire the Taiwan business of Delivery Hero-owned Foodpanda for $950 million in cash, as Foodpanda shifts its focus to other markets. The deal, pending regulatory approval, is set to close in the first half of 2025, according to a joint statement by the two firms. Additionally, in a separate agreement, Delivery Hero will sell $300 million in newly issued ordinary shares to Uber.
Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, noted that the Taiwan market is highly competitive, and the acquisition will aid in their market expansion. He highlighted that online food delivery platforms in Taiwan currently represent only a small portion of the food delivery landscape. Meanwhile, Niklas Östberg, co-founder and CEO of Delivery Hero, mentioned the need to concentrate their resources on areas of their global footprint where they can make the greatest impact for customers, vendors, and riders.
Foodpanda, a major player in the online food and grocery delivery sector in Asia, operates in various markets including Singapore, Malaysia, Thailand, The Philippines, and Hong Kong. The company was acquired by Germany’s Delivery Hero in 2016. In Taiwan, Foodpanda and Uber Eats dominate the food delivery market. Market insights from Measurable AI as of August indicated that Foodpanda held a 52% market share by order volume in Taiwan, with Uber Eats capturing the remaining 48%.
The acquisition deal with Foodpanda marks one of the largest international acquisitions in the Taiwanese market, excluding those in the semiconductor chip industry. Delivery Hero had previously announced in February that discussions to sell its Foodpanda business in selected Southeast Asian markets had ended. Östberg expressed the company’s contentment with retaining its Foodpanda operations in Southeast Asia indefinitely.
TAIPEI, TAIWAN – 2021/07/19: A foodpanda delivery man wearing a face mask rides past a Taiwanese flag ahead of the COVID-19 alert Level 3 restriction lift in Taipei. (Photo by Walid Berrazeg/SOPA Images/LightRocket via Getty Images)
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Uber’s agreement to purchase Foodpanda’s operations in Taiwan for a substantial sum underscores the competitive dynamics and growth potential in the online food delivery landscape. Both companies aim to leverage this deal to strengthen their market position and offer enhanced services to customers in the region.
With this acquisition, Uber is poised to make significant strides in expanding its presence and influence in Taiwan’s rapidly evolving food delivery market. The collaboration between Uber and Foodpanda presents a strategic partnership that is expected to drive innovation and cater to the evolving needs of consumers in the region. The merging of their resources and expertise is anticipated to result in a more robust and efficient food delivery ecosystem in Taiwan.
As the deal moves towards completion following regulatory approvals, industry experts are keenly observing the developments to analyze the impact of this acquisition on the wider market and the competitive dynamics between online food delivery platforms in the region. The strategic moves by Uber and Delivery Hero in this acquisition signify a pivotal moment in the evolution of the food delivery industry in Taiwan and the broader Asian market.
