KUALA LUMPUR – Uber will be acquiring Delivery Hero’s Foodpanda delivery business in Taiwan for US$950 million (approximately RM4.49 billion) in cash.
The acquisition of Foodpanda Taiwan is subject to regulatory approval and other customary closing conditions. It is targeted to close in the first half of 2025, said Delivery Hero.
Separately, the companies have also entered into an agreement for Uber to purchase US$300 million in newly issued ordinary shares of Delivery Hero.
“In the period following closing, Foodpanda’s local consumers, merchants, and delivery partners will be transitioned to Uber Eats,” according to the statement issued today.
Delivery Hero chief executive officer and co-founder Niklas Östberg said: “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.”
Meanwhile, Uber promises that the acquisition will improve choices and prices for consumers and increase earning opportunities for delivery partners.
Once completed, this deal would be one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry.
Uber last year recorded a 17% increase in sales to US$37.3 billion, thanks to the growing popularity of Uber Eats.
In Taiwan, Uber Eats and Foodpanda have been competitors in the market for many years. – May 14, 2024