Taiwan Stops Uber From Buying Foodpanda

Taiwan has prevented Uber Technologies from purchasing Delivery Hero’s Foodpanda’s operations for $950 million. Taiwan’s official Central News Agency (CNA) said Wednesday that  Foodpanda’s operations on the island were suspended because of competition concerns.

The Fair Trade Commission of Taiwan said it would explain at a press conference but declined to comment.

The Taiwan deal, which is a separate agreement for Uber to buy $300 million worth of newly issued shares in the German food delivery company, was announced by Uber and Delivery Hero in May. The US company anticipated such an acquisition would add at least $150 million annually to adjusted core earnings from its delivery business.

Foodpanda’s operations on the island have broken even in adjusted core earnings for the 12 months ending March 31, 2024, however, online food delivery platforms only make up a small portion of Taiwan’s competitive food delivery market.

Niklas Östberg, co-founder and CEO of Delivery Hero, stated, “We need to concentrate our resources on other areas of our global footprint where we believe we can have the greatest impact for customers, sellers, and delivery people.”.

Uber Eats is vying for the top spot in Taiwan. In a market where “online meal delivery platforms currently represent only a small part of the meal delivery landscape,” Pierre-Dimitri Gore-Coty, SVP of delivery activity at Uber, stated that the American company would have a fresh start after the acquisition.

 

 

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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