Uber Technologies has ended its acquisition of Delivery Hero’s Foodpanda in Taiwan, the Germany-based tech agency stated on Tuesday.
The announcement comes roughly three months after Taiwan’s antitrust regulator blocked the deal, citing aggressive points. The Fair Trade Commission (FTC) stated that if Uber acquired Foodpanda, its market share in Taiwan would improve to 90%, doubtlessly main to cost will increase by Uber.
Uber Eats and Foodpanda are the highest gamers in Taiwan’s meals supply market. In a current report, it was discovered that Foodpanda loved 52% market share from January 2022 to August 2023, whereas Uber Eats had 48%. Food supply corporations like Foodomo and lots of different fast-food supply apps make up a tiny share of Taiwan’s market share, comparatively.
Under the settlement signed on May 14, 2024, Uber is required to pay a termination charge that’s estimated to be about USD $250 million.
Uber and Delivery Hero didn’t instantly reply to a TechCrunch request for remark.
When Uber introduced it will purchase Foodpanda’s Taiwan division from Delivery Hero, it anticipated to finish the deal within the first half of 2025. The transfer aligned with Uber Eats’ plan to develop in Asia, significantly by strengthening its presence in Taiwan. The two corporations additionally engaged in a separate deal during which Uber agreed to purchase $300 million of newly issued odd shares from Delivery Hero.
The deal additionally highlighted Delivery Hero’s continued withdrawal from that very same market. At the time, Delivery Hero was attempting to dump a bundle of its different Southeast Asian operations — together with in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand — to an undisclosed third celebration. In September 2023, it ended these discussions, saying in a press release that the “resolution to terminate negotiations after months of discussions was taken after cautious consideration.”
Delivery Hero’s meals supply division competes with Grab in Southeast Asia.
In September, its Foodpanda unit staged a layoff aimed toward streamlining operations forward of a possible sale. The cuts adopted earlier staffing layoffs in 2022 and 2023.
