Uber Eats to acquire Delivery Hero’s foodpanda in Taiwan for $950 million in cash

Uber has agreed to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950 million in cash. Additionally, Uber will purchase $300 million in newly issued ordinary shares of Delivery Hero. The acquisition is subject to regulatory approval and other customary closing conditions, with a target to close in the first half of 2025.

Until the completion of the deal, Delivery Hero will maintain the operations of foodpanda Taiwan. Post-closing, foodpanda’s local consumers, merchants, and delivery partners will transition to Uber Eats.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, expressed confidence in the deal, stating, “The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years.” Östberg added, “In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint.” 

The acquisition will leverage Uber’s global expertise in operating efficient marketplaces with foodpanda’s extensive coverage and relationships with local brands in Taiwan. This combination aims to offer consumers greater choice across food types and price points by consolidating merchants on Uber Eats and foodpanda onto a single platform.

Uber Eats and FoodPanda are the dominant players in Taiwan’s food delivery market. A recent report revealed that FoodPanda held the leading position with 52% of the market share, while Uber Eats followed closely behind with 48%. Other competitors in the food delivery sector, such as Foodomo and various fast food delivery apps, collectively accounted for less than 2% and 6% of Taiwan’s market share, respectively.

Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, highlighted the potential benefits of the deal, stating, “Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers.” Gore-Coty emphasized the fierce competitiveness of the Taiwanese market and Uber’s commitment to delivering greater convenience and value.

Once finalized, this acquisition would be one of the largest international deals in Taiwan, underscoring Uber’s commitment to the region. Uber’s decision to increase its investment in Taiwan demonstrates confidence in the country’s long-term attractiveness for international companies and investors, outside of the semiconductor industry.

According to Statista, the online food delivery market in Taiwan is forecasted to grow to approximately $68.5 million by 2029, compared to $51.3 million in 2024.