Uber finishes the acquisition of foodpand Taiwan, citing regulatory obstacles

Uber Technologies has accomplished the acquisition of foodpand Hero in Taiwan, a German technology company he said on Tuesday.

The commercial appears about three months later Taiwan antitrust regulator he blocked the contract, citing Competitive problems. The Honest Trade Commission (FTC) said that if Uber purchased a foodpand, its market share in Taiwan will increase to 90%, potentially resulting in Uber’s price increase.

Uber eats and foodpanda are The best players On the food supply market in Taiwan. In the last report was found This foodpand enjoyed a 52% market share from January 2022 to August 2023, while Uber Eats had 48%. Food supply corporations, reminiscent of foodomo and lots of other applications for providing fast food, constitute a small percentage of Taiwan market share.

Pursuant to the contract signed on May 14, 2024, Uber is obliged to pay a termination fee, which is estimated at around USD 250 million.

Uber and the delivery hero didn’t immediately reply to the technical request for comment.

When Uber announced He would buy Taiwan Division Foodpand from the delivery hero, he expected to finish the contract in the first half of 2025. Transferring in accordance with Uber Eatsa’s plan in Asia, especially by strengthening its presence in Taiwan. Both corporations also got involved in a separate agreement wherein Uber agreed to purchase $ 300 million of newly broadcast unusual shares from the hero of delivery.

The contract also emphasized the further withdrawal of the hero of delivery from the same market. At that point, the delivery hero tried to sell a package of other Southeast Asia operations – including in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand – an undisclosed third side. In September 2023 ended these discussionsAn announcement in a press release that “the decision to solve negotiations after months of discussion was made after thoroughly considered.”

The hero’s food supply division compete with hornbeams in Southeast Asia.

In September, his foodpanda unit released the exemption geared toward improving operations before potential sales. The cuts previously occurred with dismissals from staff in 2022 and 2023.