SAN FRANCISCO, CA & BERLIN - The food delivery arena is being shaken up thanks to an acquisition made by Uber Technologies. The company has reached an agreement for Uber to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950 million in cash. The acquisition is subject to regulatory approval and other customary closing conditions and is targeted to close in the first half of 2025.
Separately, the companies have also entered into an agreement for Uber to purchase $300 million in newly issued ordinary shares of Delivery Hero.
“Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners,” Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, stated. “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.”
Until closing, Delivery Hero is dedicated to operating foodpanda Taiwan as before, offering the best possible service for its customers and vendors, a press release stated. In the period following closing, foodpanda’s local consumers, merchants, and delivery partners will be transitioned to Uber Eats.
Due to its existing presence in Taiwan, Uber is best placed to build upon the significant local operations developed by Delivery Hero and foodpanda over the past years, and invest further into an improved experience for consumers, merchants, and delivery partners.
The deal will combine Uber’s global expertise in operating a high-efficiency marketplace with foodpanda’s extensive coverage across Taiwan and its relationships with beloved local brands. The deal will also give consumers greater choice across food types and price points by bringing the complementary groups of merchants on Uber Eats and foodpanda onto a combined platform.
Once completed, this deal would be one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry. Uber’s decision to commit to this considerable increase in its Taiwan investment is a concrete vote of confidence in the continued long-term attractiveness of Taiwan for international companies and investors.
For more from the press release, click here.
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