Uber Acquires Foodpanda's Taiwan Business from Delivery Hero for $1.25 Billion

Uber acquires foodpanda's Taiwan delivery business for $1.25 billion, expanding its food delivery services in the country. The deal combines Uber's global expertise with foodpanda's local presence, enhancing services for customers, restaurants, and delivery partners.

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Aqsa Younas Rana
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Uber Acquires Foodpanda's Taiwan Business from Delivery Hero for $1.25 Billion

Uber Acquires Foodpanda's Taiwan Business from Delivery Hero for $1.25 Billion

Uber Technologies Inc. (NYSE: UBER) has reached an agreement with Delivery Hero SE (FSE: DHER) to acquire foodpanda's delivery business in Taiwan for $950 million in cash and $300 million in newly issued ordinary shares of Delivery Hero. The acquisition, subject to regulatory approval and customary closing conditions, is targeted to close in the first half of 2025.

Why this matters: This acquisition marks a significant expansion of Uber's food delivery business in Taiwan, demonstrating the company's commitment to investing in the country and strengthening its position in the competitive market. The deal's impact will be felt beyond Taiwan, as it sets a precedent for international acquisitions in the food delivery industry and could influence the market dynamics in other regions.

The deal combines Uber's global expertise in operating a high-efficiency marketplace with foodpanda's extensive coverage across Taiwan and its relationships with local brands. Consumers will benefit from a wider selection of food options and price points, while merchants and delivery partners will see increased demand and earnings opportunities.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, stated, "The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years. 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 where we feel we can have the largest impact for customers, vendors, and riders."

Pierre Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, added, "Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners." partners

The acquisition will be one of the largest international acquisitions in Taiwan outside of the semiconductor industry, demonstrating Uber's commitment to investing in the country. However, the press release contains forward-looking statements regarding Uber's future business expectations, which involve risks and uncertainties. Actual results may differ materially from the predicted results.

The $1.25 billion deal marks a significant expansion of Uber's food delivery business in Taiwan, as it aims to strengthen its position in the competitive market. With foodpanda's established presence and Uber's global expertise, the combined platform is poised to offer enhanced services to customers, restaurants, and delivery partners across the island.

Key Takeaways

  • Uber acquires foodpanda's Taiwan delivery business for $1.25 billion.
  • Deal combines Uber's global expertise with foodpanda's local coverage.
  • Consumers to benefit from wider food options and price points.
  • Merchants and delivery partners to see increased demand and earnings.
  • Acquisition marks significant expansion of Uber's food delivery business in Taiwan.