Ride-hailing platform Uber is all set to acquire Delivery Hero’s Foodpanda delivery business in Taiwan. The deal will be completed in cash for $950 million.
Foodpanda is a delivery platform in Asia and some regions of Europe operated by Germany-based Delivery Hero. The platform provides customers with a large selection of food, groceries, and other items promptly. Foodpanda began operating as a meal delivery service in Singapore in 2014. Since then, it has been expanding its quick-commerce presence in over 400 cities throughout 11 Asian regions, including Singapore, Hong Kong, Thailand, Malaysia, Pakistan, Taiwan, the Philippines, Bangladesh, Laos, Cambodia, and Myanmar.
The aim is to conclude the acquisition of Foodpanda Taiwan in the first half of 2025, subject to regulatory approval and other usual closing conditions. Uber and Delivery Hero have also reached a separate arrangement whereby Uber will buy $300 million worth of freshly issued common shares from Delivery Hero. Until the deal is closed, Delivery Hero will continue to operate Foodpanda Taiwan as before.
After the closing, all the local consumers, merchants, and delivery partners of FoodPanda will be transitioned to Uber Eats. Niklas Östberg, CEO and Co-Founder of Delivery Hero, said in a company statement, “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 for customers, vendors, and riders. This deal gives Foodpanda an exciting runway in Taiwan, and we wish them all the best in their next chapter.”
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at 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.”
Additionally, by combining the complimentary merchant groups on FoodPanda and Uber Eats onto one platform, as per the company, the partnership will provide consumers with more options in terms of food choices and price points. Customers will profit, for instance, when Foodpanda's comparative advantage in southern Taiwan and in smaller cities is combined with Uber's greater selection in northern Taiwan and in big urban centers.
