Uber to acquire foodpanda's TW business for US$950m in cash

Uber and Delivery Hero have reached an agreement to acquire Delivery Hero's foodpanda delivery business in Taiwan for US$950 million in cash.

According to the release, the deal will combine Uber’s global expertise in operating a high-efficiency marketplace with foodpanda’s extensive coverage across Taiwan and its relationships with local brands. 

Moreover, the deal aims to give consumers greater choice across food types and price points by bringing the complementary groups of merchants on Uber Eats and foodpanda onto a combined platform. 

Consumers may 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, according to Delivery Hero.

The acquisition of foodpanda Taiwan is subject to regulatory approval and other customary closing conditions and is targeted to close in the first half of 2025. Meanwhile, the companies have also entered into an agreement for Uber to purchase US$300 million in newly issued ordinary shares of Delivery Hero.

According to the release, Delivery Hero is dedicated to maintaining the same operations for foodpanda Taiwan until the closing of the deal. In the period following closing, foodpanda’s local consumers, merchants, and delivery partners will be transitioned to Uber Eats. 

Pierre-Dimitri Gore-Coty, senior vice president of delivery, Uber, said: “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."

"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," Gore-Coty added.

Niklas Östberg, CEO and co-founder, Delivery Hero, said: “The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years. In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact on customers, vendors and riders. This deal gives foodpanda an exciting runway in Taiwan and we wish them all the best in their next chapter.”

MARKETING-INTERACTIVE has reached out to Uber and Delivery Hero respectively for a statement.

According to the release, once completed, this deal would be one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry.

Back in February this year, Delivery Hero terminated discussions with the main negotiating counterpart regarding a potential sale of its foodpanda business in selected Southeast Asian markets covering Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar and Laos.

According to a report by Bloomberg in November last year, Meituan is exploring a potential acquisition of Delivery Hero’s business in Southeast Asia as it looked to diversify beyond its domestic market. However, Meituan said in December last year that it was not interested in acquiring online food and grocery delivery company foodpanda.

According to a Bloomberg report in November last year, Meituan was considering the possibility of acquiring Delivery Hero's business in Southeast Asia as part of its efforts to expand beyond its domestic market. However, Meituan clarified in December that it had no interest in acquiring foodpanda.

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