Uber Acquires Delivery Hero's Foodpanda Business in Taiwan for $950 Million

Uber Technologies Inc. is buying Delivery Hero SE’s Foodpanda business in Taiwan for $950 million. This helps Uber to have more control in an important Asian market and expand in the region. The deal is expected to be completed by the first half of 2025. The acquisition is significant for Taiwan as it is one of the largest deals in the country outside of the chip industry. It also means that Delivery Hero is stepping back from its operations in Asia. Both Uber and Delivery Hero need approval from regulators for this deal to go through. Foodpanda and UberEats have been competing closely in Taiwan for food delivery services. Uber plans to merge the two businesses under the Uber Eats brand. Additionally, Uber agreed to buy $300 million of new Delivery Hero stock. Uber's meal delivery business performed well globally in the last quarter. However, in the first quarter, gross bookings were below what analysts expected. Despite this, the food delivery business showed strong performance, exceeding expectations in gross bookings. Uber's deal with Delivery Hero includes taking over the foodpanda business in Taiwan for $900 million in cash and buying $300 million in new shares of Delivery Hero. This move is expected to boost Uber's delivery business profits by at least $150 million annually within a year of the deal's completion. Delivery Hero has been focusing on improving profitability by divesting some of its assets in Asia. The company processed transactions worth 1.6 billion euros in the last 12 months in Taiwan. With a stronger balance sheet and partnership with Uber, Delivery Hero's competitive position has improved, allowing for potential marketing initiatives. Overall, this deal between Uber and Delivery Hero aims to strengthen both companies' positions in the competitive food delivery market in Asia, particularly in Taiwan.