The German-based tech company said Tuesday that Uber Technologies had ended its acquisition of streaming hero Foodpanda in Taiwan.
The announcement comes around three months after Taiwan's anti-trust regulator blocked the transaction, citing competitive issues. The Fair Trade Commission (FTC) said if Uber acquires Foodpanda, Taiwan's market share could increase to 90%, leading to price increases due to Uber.
Uber Eats and Foodpanda are top players in Taiwan's food delivery market. A recent report found that Foodpanda enjoyed a 52% market share from January 2022 to August 2023, while Uber Eats was 48%. Food delivery companies such as Foodomo and many other fast food delivery apps make up a relatively small percentage of Taiwan's market share.
Under the agreement signed on May 14, 2024, Uber will be required to pay a termination fee, estimated at approximately US$250 million.
Uber and Delivery Hero did not respond immediately to TechCrunch requests for comments.
When Uber announced it would be purchasing Foodpanda's Taiwanese division from delivery heroes, it was expected to close the transaction in the first half of 2025. The move coincided with Uber Eats' plans to grow in Asia, particularly by strengthening its presence in Taiwan. The companies also engaged in a separate agreement in which Uber agreed to purchase $300 million of newly issued common stock from Delivery Hero.
The deal also highlights the ongoing withdrawal of the streaming heroes from the same market. At the time, delivery heroes were trying to sell packages from other Southeast Asian businesses, including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand, to private third parties. In September 2023, he concluded these discussions, saying, “After careful consideration, a decision was made to close negotiations after several months of discussion.”
Delivery Hero's food delivery division competes with Southeast Asian glove.
In September, its Foodpanda unit staged a layoff aimed at streamlining operations ahead of potential sales. The cuts followed early staffing layoffs in 2022 and 2023.
