Uber Technologies Inc. (NYSE: UBER) has officially terminated its $950 million bid to acquire Delivery Hero’s (DHER.DE) Foodpanda business in Taiwan, citing regulatory obstacles.
The decision comes after Taiwan’s Fair Trade Commission (TFTC) blocked the deal in December 2024 over anti-competitive concerns.
Regulatory Decision and Market Impact
The TFTC determined that Uber’s acquisition of Foodpanda would have resulted in a combined market share of 90% in Taiwan’s food delivery sector, potentially reducing competition and leading to higher consumer prices. Uber has decided not to appeal the ruling, leading to the formal termination of the acquisition agreement.
As part of the contract terms, Uber will pay Delivery Hero a termination fee estimated at approximately $250 million. However, this decision does not affect a separate agreement between the two companies, which allows Uber to purchase $300 million worth of newly issued shares in Delivery Hero.
Food Delivery Landscape in Asia
The food delivery industry in Asia has shown signs of recovery following a post-pandemic slowdown, with companies competing aggressively through discounts and promotions to attract cost-conscious customers. Uber, which operates Uber Eats, had aimed to leverage Foodpanda’s quick-commerce model to expand its reach in Taiwan.
Despite the setback, Delivery Hero remains committed to its long-term strategy in Taiwan and continues to support Foodpanda’s operations in the region. The company emphasizes its dedication to enhancing customer experiences and maintaining strong relationships with riders and vendors.
Uber’s Acquisition Strategy
Uber has a history of strategic acquisitions, having completed 16 deals with an average acquisition value of $1.48 billion. While its most active acquisition year was 2019, Uber has expanded across five countries, primarily focusing on markets in the United States and the United Kingdom.
The failed Foodpanda Taiwan deal underscores the regulatory challenges that major multinational firms face when attempting to consolidate market share in competitive industries. As Uber and Delivery Hero move forward, the focus will remain on adapting to evolving regulatory landscapes while seeking new avenues for growth in the global food delivery market.
