Uber to Acquire Foodpanda Delivery Business in Taiwan for $950 Million

Uber Technologies, Inc. has announced its plans to acquire Delivery Hero SE’s Foodpanda delivery business in Taiwan for $950 million in cash. The acquisition is part of Uber’s strategy to expand its presence in Asia and strengthen its position in Taiwan’s competitive delivery market.

The deal is subject to regulatory approval and is expected to close in the first half of 2025. Additionally, Uber will purchase $300 million worth of newly issued ordinary shares of Delivery Hero as part of a separate agreement.

This move comes as Uber Eats aims to increase its market share in Asia, while Delivery Hero focuses on other markets. The acquisition is Uber’s plans to grow in the region and Delivery Hero’s strategic shift in its business operations.

Until the acquisition is finalized, Delivery Hero commits to maintaining the current operations of Foodpanda Taiwan, ensuring continuity of service for both customers and vendors. Following the completion of the acquisition, Uber Eats will oversee the transition of local consumers, merchants, and delivery partners from Foodpanda to its platform, aiming to provide an enhanced experience for all stakeholders.

Delivery Hero’s focus on divesting certain assets in the region is part of its efforts to improve profitability, especially in Asia, where the company has witnessed growth. While the food delivery market in Asia has rebounded from a slowdown during the pandemic, companies in the sector face challenges related to thin profit margins due to heavy spending on discounts and promotions to retain customers amidst rising inflation and cost of living concerns.

Niklas Östberg, CEO and Co-Founder of Delivery Hero expressed gratitude for the efforts of various teams over the past eight years for the strength of their Taiwanese business. He emphasized the need to redirect resources to regions where Delivery Hero can impact its customers, vendors, and riders more. 

The acquisition deal between Uber and Delivery Hero signals a move in the competitive landscape of Taiwan’s food delivery market. With Uber’s acquisition of Foodpanda’s Taiwan unit for $950 million in cash and an additional investment of $300 million in newly issued Delivery Hero shares, the transaction underscores Uber Eats’ strategic objective to expand its presence in Asia, particularly by strengthening its position in Taiwan. 

Taiwan’s food delivery market is currently dominated by Foodpanda and Uber Eats, with Foodpanda leading the market with a 52% share by order volume, while Uber Eats holds the remaining 48%. 

The acquisition is expected to bring together the distinct customer bases, merchant selections, and geographic footprints of both platforms, offering consumers more choices and competitive prices, boosting demand for restaurants, and creating additional earning opportunities for delivery partners. 

The transaction is set to be one of the largest international acquisitions in Taiwan outside of the semiconductor chip industry, and it reflects the continued appeal of Taiwan as an attractive market for global companies and investors.

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