Uber buys Taiwanese business from rival Delivery Hero for $950 million

Uber has bought the Foodpanda business owned by Delivery Hero in Taiwan for $950 million to strengthen its control over the key Asian market.

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Uber aims to complete the deal by the first half of 2025. The acquisition is one of the largest in Taiwan, excluding the semiconductor industry, and it also marks Delivery Hero's exit from Asia. Both parties stressed that the acquisition is subject to regulatory approval, a potential problem as Uber and Delivery Hero are now the two main players in the market.

Foodpanda and UberEats have been important in the food delivery industry in Taiwan for many years. As of August 2023, Foodpanda maintained the lead with 52% of food delivery order volume compared to UberEats.

Uber aims to combine the two businesses under the Uber Eats brand and has separately agreed to acquire Delivery Hero's shares for $300 million. Delivery Hero said it hopes to use the proceeds from the deal to buy back convertible bonds.

Shares of Delivery Hero rose 19% to 30.08 euros at 9:47 a.m. in Frankfurt after a previous rise of 22%, the largest intraday increase since February. The stock is up 20% this year.

Source: Bloomberg