Uber Ends Foodpanda Taiwan Acquisition - Regulatory Issues

Uber Terminates Foodpanda Taiwan Acquisition

Uber Technologies has officially ceased its planned acquisition of Foodpanda Taiwan, a subsidiary of the Germany-based Delivery Hero. This announcement was made by Delivery Hero on Tuesday.

Antitrust Concerns Block the Deal

The termination follows a decision made approximately three months prior by Taiwan’s antitrust regulatory body, the Fair Trade Commission (FTC). The FTC blocked the deal due to concerns regarding potential anti-competitive practices.

Specifically, the FTC determined that an Uber acquisition of Foodpanda would result in a combined market share of 90% in Taiwan. This consolidation could potentially lead to increased pricing for consumers utilizing Uber’s services.

Market Dominance of Uber Eats and Foodpanda

Uber Eats and Foodpanda currently represent the dominant forces within Taiwan’s food delivery sector. Recent data indicates that Foodpanda controlled 52% of the market share between January 2022 and August 2023.

Uber Eats, in comparison, held a 48% share during the same period. Other food delivery services, such as Foodomo and various fast-food specific apps, collectively represent a significantly smaller portion of the Taiwanese market.

Financial Implications of the Termination

As stipulated in the agreement signed on May 14, 2024, Uber is obligated to remit a termination fee. This fee is estimated to be around USD $250 million.

Both companies decided against challenging the FTC’s ruling. According to a Delivery Hero representative, the deadline for filing an appeal expired on March 10, 2025.

Original Acquisition Plans and Separate Investment

Initially, Uber anticipated completing the Foodpanda Taiwan acquisition during the first half of 2025. This move was intended to bolster Uber Eats’ growth strategy within the Asian market, with a particular focus on strengthening its position in Taiwan.

Concurrently, a separate agreement was reached wherein Uber committed to purchasing $300 million worth of newly issued ordinary shares from Delivery Hero. The termination of the acquisition will not impact this separate investment, as confirmed by a Delivery Hero spokesperson to TechCrunch.

Delivery Hero’s Market Strategy Shift

This situation also underscores Delivery Hero’s broader strategy of reducing its presence in certain markets. The company had previously explored the possibility of selling off its operations in several Southeast Asian countries.

These included Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand, with discussions held with an unnamed third party. However, these negotiations were ultimately concluded in September 2023, with Delivery Hero citing a careful evaluation of the situation.

Competition in Southeast Asia

Delivery Hero’s food delivery services compete directly with Grab throughout Southeast Asia.

Operational Streamlining at Foodpanda

In September 2023, Foodpanda implemented workforce reductions as part of an effort to streamline operations, potentially in anticipation of a sale. These cuts followed previous staffing adjustments made in both 2022 and 2023.

Note: This article has been updated to incorporate statements from Delivery Hero.