San Francisco: Uber Technologies has announced its intention to acquire Delivery Hero’s owned foodpanda business in Taiwan for $950 million in cash, as part of its strategic realignment towards prioritized markets in the online food ordering sector.
The acquisition is contingent upon regulatory approval and customary closing conditions and is expected to finalize in the first half of 2025, as stated in a joint statement issued by both companies on Tuesday.
Additionally, Uber and Delivery Hero have reached an agreement for Uber to purchase $300 million worth of newly issued ordinary shares of Delivery Hero.
Niklas Ostberg, CEO and Co-Founder of Delivery Hero, remarked, “To establish a globally leading service, we have determined that redirecting our resources towards other segments of our global presence, where we can make the most significant impact for customers, vendors, and riders, is imperative.”
Until the completion of the acquisition, Delivery Hero will maintain operations for foodpanda Taiwan as usual. Post-closure, the local consumer base, merchants, and delivery partners will transition to Uber Eats.
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, emphasized the strategic advantages of combining their respective customer bases, merchant offerings, and geographical reach. He stated, “This integration will enable us to offer consumers more choices and competitive pricing, generate increased demand for restaurants, and create additional earnings opportunities for delivery partners.”
Gore-Coty highlighted Taiwan’s fiercely competitive market landscape, noting that online food delivery platforms currently represent only a fraction of the overall food delivery market.
foodpanda, a prominent online food and grocery delivery service in Asia, operates in key markets such as Singapore, Malaysia, Thailand, the Philippines, and Hong Kong. Delivery Hero, headquartered in Germany, acquired the company in 2016.
