Staff Reporters
May 15, 2024

Uber buys out Foodpanda in Taiwan for $950 million

Delivery Hero, the parent company of Foodpanda, has been actively seeking to offload some of its regional assets to enhance its profitability.

Uber buys out Foodpanda in Taiwan for $950 million

Uber will acquire the Taiwanese operations of Delivery Hero's Foodpanda for $950 million in cash.

This deal, slated to be one of Taiwan's most significant international acquisitions outside the semiconductor sector, is expected to close in the first half of 2025, pending regulatory approvals. Separate to the deal, Uber will also invest an additional $300 million in Delivery Hero by purchasing newly issued ordinary shares.

By buying Foodpanda in Taiwan, Uber hopes to bolster its service offerings in Asia, particularly through its Uber Eats segment. Uber's investment aims to strengthen the partnership between the two companies in the competitive food delivery market in Asia, where Delivery Hero claims about 36% of its revenue.

After the deal's closure, the transition plan involves moving Foodpanda’s Taiwanese consumers, merchants, and delivery partners to Uber Eats.

Niklas Östberg, CEO and co-founder of Delivery Hero, emphasised the transaction as a strategic realignment, allowing the company to focus on other markets.

"The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years," said Östberg in a press release. "This deal gives Foodpanda an exciting runway in Taiwan, and we wish them all the best in their next chapter."

Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber added: “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.”

Uber's rival Grab was previously looking to buy Foodpanda in Singapore but the deal fell through after Singapore's consumer watchdog raised concerns about the anti-competitive nature of the deal.

Globally, Uber recently reported a swing to a first-quarter loss, though its delivery bookings slightly exceeded expectations.

Source:
Campaign Asia

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