Uber has scrapped its $950 million bid to acquire Delivery Hero’s Foodpanda business in Taiwan after facing regulatory roadblocks. The decision follows Taiwan’s Fair Trade Commission (FTC) blocking the deal in December over anti-competitive concerns.
The FTC argued that Uber’s takeover of its primary rival, Foodpanda, would give the company a 90% market share in Taiwan, potentially leading to higher consumer prices. Uber has chosen not to appeal the ruling and will pay a deal termination fee of approximately $250 million.
The acquisition was originally announced in May 2023 and included a separate agreement for Uber to purchase $300 million in newly issued shares of the German-based Delivery Hero. Despite the failed takeover, Delivery Hero confirmed that the share-purchase agreement remains unaffected.
Asia’s food delivery industry has rebounded from the post-pandemic slump, but companies continue to face fierce competition and tight margins as they invest heavily in discounts to attract cost-conscious consumers. Uber, which operates Uber Eats, had hoped to leverage Foodpanda’s quick-commerce business to expand its presence in the region. However, with the deal now off the table, Uber will have to explore alternative strategies for growth in Taiwan.
