Uber expands its footprint in Taiwan with a US$950 million acquisition of foodpanda

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14th May 2024 – (Taipei) Uber Technologies Inc. is set to acquire the Taiwanese operations of foodpanda from Germany’s Delivery Hero in a cash deal valued at $950 million, the companies announced on Tuesday. This strategic move is part of Delivery Hero’s broader effort to streamline its portfolio and enhance profitability amidst growing concerns from investors about its financial health.

As Delivery Hero refocuses its strategy on other key markets, CEO Niklas Ostberg emphasized the importance of prioritizing areas where the company can make the most significant impact. “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,” Ostberg stated in a joint press release.

The divestiture of the foodpanda brand in Taiwan marks a shift in Delivery Hero’s presence in Asia. Earlier this year, the company had also explored selling its foodpanda operations in select Southeast Asian markets but eventually ceased these discussions in February.

In addition to the takeover, Uber has agreed to invest an additional $300 million in Delivery Hero through the purchase of new shares priced at 33 euros each. This transaction will give Uber a 2.98% stake in the German company, which saw its shares close at 25.32 euros on Monday.

Despite the competitive nature of Taiwan’s food delivery sector, where online platforms account for a minor share, foodpanda’s Taiwanese business reported break-even adjusted core earnings for the twelve months ending March 31. During this period, the business processed transactions totalling approximately 1.6 billion euros ($1.73 billion).

The acquisition, which is expected to be completed in the first half of 2025, represents a significant expansion of Uber’s service offerings in Taiwan and underscores the ongoing consolidation in the global food delivery market.