Uber terminates the acquisition of Foodpanda Taiwan, citing regulatory obstacles

Uber Technologies has completed the acquisition of Delivery Hero Foodpanda in Taiwan, a German -based technology company said on TuesdayS

The message comes approximately three months after Taiwanese regulator of the antitrust regulator blocks the deal, quoting competitive problemsS The Fair Trade Commission (FTC) said that if Uber acquires Foodpanda, its market share in Taiwan will increase to 90%, which will potentially lead to an increase in prices from Uber.

Uber eats and foods are The best players On the market for food delivery in Taiwan. In a recent report was found This Foodpanda enjoyed a 52% market share from January 2022 to August 2023, while Uber Eats had 48%. Food delivery companies such as Foodomo and many other fast food supplies make up a small percentage of Taiwan’s market share, relatively.

Under the agreement signed on May 14, 2024, Uber is obliged to pay a termination fee, which is estimated at about $ 250 million.

Uber and Delivery Hero did not immediately respond to TechCrunch’s request for comment.

When Uber declared He would buy the Foodpanda Taiwanese Division of Delivery Hero, expected to conclude the deal in the first half of 2025. This move, aligned with the Uber Eats plan to grow in Asia, especially by strengthening its presence in Taiwan. The two companies also engaged in a separate deal in which Uber agreed to buy $ 300 million newly issued ordinary shares from Delivery Hero.

The deal also emphasized the hero’s prolonged withdrawal from the same market. At that time, the delivery character was trying to sell a package of his other operations in Southeast Asia – including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand – an undisclosed third party. In September 2023, it ended these discussionsSaying in a statement that “the decision to terminate the negotiations after months of discussion was taken after careful consideration.”

Hero Hero Food Delivery is competing with GRAB in Southeast Asia.

In September his grocery ward organizes dismissal aimed at rationalizing operations before potential sale. The abbreviations followed the wider dismissals of staff in 2022 and 2023.