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Uber Eats to acquire Delivery Hero's foodpanda delivery business in Taiwan

Sumit Vishwakarma
New Update

In a significant expansion of its Asia-Pacific operations, Uber Technologies Inc. has acquired the Foodpanda delivery service in Taiwan from Delivery Hero SE for $950 million.

The move marks one of the largest business transactions in Taiwan's history outside the semiconductor sector and signifies a major shift in the regional food delivery landscape.

Post-acquisition, Food Panda’s services in Taiwan will be integrated into the Uber Eats platform. The company believes the transition will enhance delivery efficiency and broaden the service offerings available to Taiwanese consumers.

What does the acquisition entail?


Uber's acquisition includes a full takeover of Foodpanda's operations in Taiwan for $900 million in cash.

Additionally, Uber will invest $300 million in newly issued shares of Delivery Hero. This strategic purchase is set to consolidate Uber's presence in Taiwan, combining Foodpanda's extensive local network with Uber Eats' technological prowess and international brand.

Why Taiwan, and why now?

Taiwan represents a crucial market in the Asian food delivery sector, with Foodpanda holding a slight lead over Uber Eats in terms of order volume as of mid-2023.

"Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape. We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead," said Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber.

The deal, expected to close in the first half of 2025, aims to merge the operations under the Uber Eats brand, enhancing service quality and expanding consumer choice across various cities and regions within Taiwan.

"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," said Niklas Ostberg, CEO and co-founder of Delivery Hero.

Offering a broader selection of food options

The merger is anticipated to bring together the best of both platforms, offering a broader selection of food options and potentially better pricing structures. This is particularly notable in Taiwan, where Uber Eats and Foodpanda have been competing closely.

The company said the integration is expected to improve " the experience for consumers, merchants, and delivery partners."

However, this consolidation has raised concerns about reduced competition. The Taiwan Fair Trade Commission is scrutinizing the merger closely, with Vice-Chair Chen Chih-min emphasizing the need to manage the deal prudently to maintain a healthy competitive market.

What does this mean for Delivery Hero?

This sale is part of Delivery Hero's broader strategy to streamline its operations and improve profitability. Having previously explored selling its operations in other Asian countries, this successful deal allows Delivery Hero to reinvest more effectively in its core markets.

The company plans to use the proceeds from this sale to repurchase convertible bonds, aiming to strengthen its financial standing.