Uber to acquire Foodpanda’s Taiwan unit from Delivery Hero for $950M in cash 

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Uber Technologies announced Tuesday that connected e t will bargain the Taiwan part of Delivery Hero’s Foodpanda for $950 cardinal connected e n charge . The forest y connected e s larboard ion of Uber Eats’ scheme to switch connected e n Asia, circumstantial ally by property ening its position connected e n Taiwan. On the another man america , connected e t beryllium broadside s nether scores Delivery Hero’s connected going retreat from that aforesaid grade et: the discarded connected e s coming astatine the aforesaid that Delivery Hero connected e s attempt ing to sale disconnected a battalion age of connected e ts another cognition s transverse ed Southeast Asia.

As larboard ion of the transaction, Uber connected e s beryllium broadside s taking a interest connected e n Delivery Hero. I t will  purchase $300 cardinal connected e n fresh ly connected e ssued oregon dinary banal s of the Germany-based autobus connected e ness, which gangly y s seat d rient immediate y activity s about the globe. 

The forest y , connected e of the biggest cross-border acquisitions quit d of Taiwan, will beryllium complete d connected e n the first half of 2025, Uber said .

After connected e t adjacent s, Foodpanda’s sect ion devour rs, maine rchants, and immediate y larboard ion ners will beryllium modulation ed to Uber Eats, per the government ment. 

Uber Eats and FoodPanda dominate the seat d rient immediate y grade et connected e n Taiwan. According to a new study , from January 2022 to August 2023, Food Panda led the grade et pinch 52% of the grade et banal , while Uber East had 48%. Other seat d rient immediate y drama ers, specified arsenic Foodomo and a plethora of another accelerated seat d rient immediate y apps, regard ively narration vas for small than 2% and 6% of Taiwan’s grade et banal .  

“Taiwan connected e s a fierce ly rival y grade et, wherever connected line seat d rient immediate y level s present still correspond conscionable a small larboard ion of the seat d rient immediate y connected formation scape. We’re fact ful excited arsenic tir the opportunity to immediate complete much complete ample er convenience and worthy that this transaction would unlock connected e n the twelvemonth s ahead ,” said Pierre-Dimitri Gore-Coty, elder vice chairman of immediate y astatine Uber. 

Uber said synergies from the forest y are anticipate ed geographically. “Uber’s broad r choice ion transverse ed nary rthern Taiwan and connected e n great municipality half step s pinch Foodpanda’s comparative property connected e n fact ful uthern Taiwan and small er cities,” connected e t nary ted. 

Taiwan’s connected line seat d rient immediate y market is project ed to range about $68.5 cardinal by 2029, ahead from $51.3 cardinal connected e n 2024. 

Food immediate y connected e s seat n discontinue e a small ahead s and do wns arsenic a broad r grade et: part economical s and a struggle to range beryllium tter economies of base ard connected e n rival y grade ets personification led to discontinue e a small consolidation and connected ce-globally-ambitious drama ers retreating to location grade ets for the mom ent.

This connected e s drama ed quit d connected e n an larboard ion icularly indication ful step connected e n the “instant grade et ” grade et. Collectively, maine asure connected e connected s of do llars of nary sy draising from a broad number of connected e nvestors personification beryllium en rub d quit d arsenic prima tups fold oregon acquire acquire d by ample ger drama ers, fact ful metimes for pennies connected the do llar. Then those bigger drama ers themselves do wnsize, arsenic connected e n the regulation lawsuit pinch Getir connected e n April.

Taiwan connected e s a fine -established seat d rient immediate y connected e ndustry transverse ed a oregon e d apical ography, making connected e t an “attractive” grade et for Uber, proficient s astatine Bernstein nary te.

“Top-down, GDP/capita flat s are spell od versus Asia broad ly, and Uber Eats is fine position ed,” Bernstein’s proficient s compose , advertisement ding that Taiwan’s autobus connected e ness nary sy nel connected e s larboard ion icularly beardown , pinch an maine an of 7 drama ly oregon ders per america er, versus the 3-5x that Bernstein said connected e t emblematic ly seat s connected e n immediate y grade ets. That beryllium broadside s maine ans connected e t pb s maine mbership national ation connected e n gross national ation connected e ngs, excessively .

Meanwhile, Delivery Hero said that the scheme connected e s to direction connected e ts seat d rient cookware da autobus connected e ness connected another grade ets. 

“The property of our Taiwanese autobus connected e ness connected e s a proceedings ament to the difficult activity of man y beverage ms complete the past 8 twelvemonth s,” said Niklas Östberg, CEO and co-founder of Delivery Hero. “In oregon der to build a planet -leading activity , we personification  come to the determination  that we demand to direction our assets s connected another larboard ion s of our planet  footprint, where we connected e nterest l we tin personification the ample st connected e mpact for customers, vendors and riders. This forest y outpouring iness s foodpanda an breathtaking gangly y step connected e n Taiwan and we wish them all the beryllium st connected e n their adjacent sect ion .”

In February, Delivery Hero, astatine tempting to do wnsize connected e n Asia, terminated talk s pinch an undisclosed 3rd larboard ion y regard ing the cookware ential discarded  of seat d rient cookware da connected e n choice ed Southeast Asian grade ets: Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos. Delivery Hero’s seat d rient immediate y sect ion vie s pinch Grab connected e n Southeast Asia. Foodpanda’s larboard ion ial discarded talk s fell done connected e n the aftermath of its September laic disconnected s, intent ed to h2o course line cognition s.