Uber Acquires Delivery Hero's Foodpanda Business in Taiwan
Uber will take over the foodpanda business in Taiwan for $900 million in cash and purchase $300 million in newly issued shares of Delivery Hero.
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Uber announced a $1.25 billion deal to take over Delivery Hero’s foodpanda business in Taiwan and buy new shares in the German firm in a move that would boost liquidity of the delivery specialist grappling with rising competition in Asia.
Niklas Ostberg, CEO and Co-founder of Delivery Hero, said, “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.”
Under the deal, Uber will take over the foodpanda business in Taiwan for $900 million in cash and purchase $300 million in newly issued shares of Delivery Hero at 33 euros each. Uber expects the acquisition to contribute at least $150 million annually to the adjusted core profit of its delivery business within a year of the deal’s closing, which is likely in the first half of 2025.
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While food delivery services in Asia have largely rebounded from a slowdown following the pandemic boom, many firms are now grappling with thin margins as they spend heavily in offering discounts and promotions to retain consumers who have become wary of rising inflation and cost of living.
As per the previous announcements, Delivery Hero had been also looking to sell its foodpanda business in selected Southeast Asian markets as part of its restructuring.
