Taipei, Taiwan – 2021/07/19: A Food Panda delivery worker wearing a face mask passes in front of the Taiwanese flag ahead of the lifting of COVID-19 alert level 3 restrictions in Taipei. (Photo by Walid Berrazeg/SOPA Images/LightRocket, Getty Images)
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Uber Technologies will acquire Foodpanda’s Taiwan operations, owned by Delivery Hero, for $950 million in cash as Foodpanda focuses on other markets.
The companies said in a joint statement on Monday that the transaction is expected to close in the first half of 2025, subject to regulatory approvals.
In a separate deal, Delivery Hero will sell $300 million in newly issued common stock to Uber.
“We need to focus our resources on other parts of our global footprint, where we can have the greatest impact on our customers, vendors and passengers,” said Nicklas Østberg, co-founder and CEO of Delivery Hero. I think we can provide that.”
Pierre-Dimitri Gore-Coty, Uber’s senior vice president of delivery, said the Taiwanese market is “intensely competitive” and the acquisition is a sign of an increase in the number of food delivery platforms in a market where “today’s online food delivery platforms are still only a small part of the food market.” He said it will help his growth. Delivery scene. ”
Foodpanda is one of Asia’s largest online food and grocery delivery platforms, with presence in markets such as Singapore, Malaysia, Thailand, Philippines, and Hong Kong. The company was acquired by Germany’s Delivery Hero in 2016.
Taiwan’s food delivery market is dominated by Foodpanda and Uber Eats. According to data from the insight platform “Measurable AI” until August, it is clear that Foodpanda has a 52% market share in Taiwan based on order volume, and Uber Eats holds the remaining 48% share. Became.
According to a joint statement, the transaction will be one of the largest international acquisitions in Taiwan outside of the semiconductor chip industry.
Delivery Hero announced in February that it had concluded negotiations to sell its Foodpanda business in certain Southeast Asian markets. Ostberg told CNBC the same month that he was “comfortable” that the company would keep its Foodpanda operations in Southeast Asia “in perpetuity.”
– CNBC’s Ryan Browne and Dylan Butts contributed to this report.
