Uber Technologies has ended its acquisition of Foodpanda from Delivery Hero in Taiwan, the technological company based in Germany said Tuesday.
The announcement comes approximately three months after Taiwan antitrust regulator blocked the agreement, citing competition problems. The Fair Trade Commission (FTC) said that if Uber had acquired Foodpanda, its market share in Taiwan would increase to 90%, which would cause Uber price increases.
Uber eats and foodpanda are The best players On the Taiwan food delivery market. In a recent report, it was found That Foodpanda benefited from 52% of market share from January 2022 to August 2023, while Uber Eats had 48%. Food delivery companies such as Foodomo and many other fast food delivery applications compared to a small percentage of Taiwan market share.
Under the agreement signed on May 14, 2024, Uber must pay termination fees which are estimated at around 250 million dollars.
Uber and the delivery hero did not immediately respond to a request for techcrunch comments.
When uber announcement He would buy the Taiwan division of Foodpanda from Delivery Hero, he expected to conclude the agreement in the first half of 2025. The move aligned on the plan of Uber Eats to develop in Asia, in particular by strengthening his presence in Taiwan. The two companies also engaged in a separate transaction in which Uber agreed to buy 300 million dollars in newly issued Delivery Hero.
The agreement also highlighted the continuous withdrawal of the delivery hero from this same market. At the time, Delivery Hero was trying to sell a set of other Southeast Asian operations – including in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand – a non -disclosed third party. In September 2023, he ended these discussionsSaying in a statement that the “decision to terminate negotiations after months of discussions was made after careful exam”.
The delivery division of the delivery of delivery of delivery is competing with GRAB in Southeast Asia.
In September, his Foodpanda unit staged a layoff aimed at rationalizing operations before a potential sale. The cuts followed previous personnel layoffs in 2022 and 2023.
