Uber Technologies has announced that it will be acquiring Delivery Hero‘s Foodpanda delivery business in Taiwan for $950 million in cash.
Pending regulatory approval and other standard closing conditions, the deal is slated to be completed in the first half of 2025. Moreover, Uber will purchase $300 million worth of newly issued ordinary shares of Delivery Hero.
Following the transaction’s completion, Foodpanda’s local consumers, merchants, and delivery partners will transition to Uber Eats.
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The agreement combines Uber’s global marketplace expertise with Foodpanda’s established presence in Taiwan and its partnerships with popular local brands. This collaboration aims to broaden consumer choices across different food categories and price ranges by consolidating the diverse groups of merchants from Uber Eats and Foodpanda onto a unified platform, according to the company’s statement.
For instance, the merger will provide consumers with benefits like Uber’s broad coverage in northern Taiwan and major cities, complemented by Foodpanda’s robust presence in southern Taiwan and smaller urban areas.
Niklas Östberg, CEO and co-founder of Delivery Hero, expressed, “The success of our Taiwanese business is a result of the dedication of numerous teams over the past eight years. To establish a globally renowned service, we’ve determined that redirecting our resources to other areas of our global footprint, where we can make the greatest difference for customers, vendors, and riders, is necessary. This agreement provides Foodpanda with an exciting opportunity in Taiwan, and we extend our best wishes to them as they embark on their next phase.”
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, remarked, “Uniting our unique customer bases, merchant offerings, and geographical reach will enable us to offer greater choices and competitive prices for consumers, increased demand for restaurants, and enhanced earning potential for delivery partners.”
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“Online meal delivery services still make up a relatively little portion of the food delivery market here. We can’t wait to use this transaction to unlock even more convenience and value in the years to come.”
Upon finalization, the deal would stand as “one of the largest ever international acquisitions in Taiwan,” with the exception of the semiconductor sector.