Uber to acquire Foodpanda’s Taiwan unit from Delivery Hero for $950M in cash

Uber Technologies announced Tuesday that it will buy the Taiwan unit of Delivery Hero’s Foodpanda for $950 million in cash. The deal is part of Uber Eats’ strategy to expand in Asia, specifically by strengthening its position in Taiwan. On the other hand, it also underscores Delivery Hero’s ongoing retreat from that same market: The sale is coming at the same time that Delivery Hero has been trying to sell off a package of its other operations across Southeast Asia.

As part of the transaction, Uber is also taking a stake in Delivery Hero. It will purchase $300 million in newly issued ordinary shares of the Germany-based business, which operates food delivery services around the globe. 

The deal, one of the biggest cross-border acquisitions out of Taiwan, will be completed in the first half of 2025, Uber said.

After it closes, Foodpanda’s local consumers, merchants and delivery partners will be transitioned to Uber Eats, per the statement. 

Uber Eats and Foodpanda dominate the food delivery market in Taiwan. According to a recent report, from January 2022 to August 2023, Foodpanda led the market with 52% of the market share, while Uber Eats had 48%. Other food delivery players, such as Foodomo and a plethora of other fast food delivery apps, respectively account for less than 2% and 6% of Taiwan’s market share.  

“Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape. We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead,” said Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber. 

Uber said synergies from the deal are expected geographically. “Consumers stand to benefit from the combination of Uber’s wider selection across northern Taiwan and in major urban centers with Foodpanda’s comparative strength in southern Taiwan and smaller cities,” it noted.

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