Taiwan Blocks Uber’s $950 Million Purchase of Foodpanda’s Local Business
Taiwan’s Fair Trade Commission (FTC) has blocked Uber Technologies’ $950 million purchase of Foodpanda’s local business on the island due to concerns it would be anti-competitive. The commission believes that the merger would eliminate competition in the food delivery platform market, allowing UberEats to raise prices and increase commissions for restaurant operators.
According to FTC Vice Chairman Chen Chih-min, the merger would give UberEats more incentive to increase prices and commissions, as it would no longer face competition from Foodpanda. The combined market share of both companies in Taiwan would exceed 90% post-merger, the commission said.
Uber and Foodpanda announced the deal in May, which included a separate agreement for Uber to purchase $300 million worth of newly issued shares of Delivery Hero, the German food delivery firm. The acquisition was expected to contribute at least $150 million annually to the adjusted core profit of Uber’s delivery business within a year of the deal’s closing.
Foodpanda’s operations on the island were break-even in terms of adjusted core earnings for the 12 months ended March 31, 2024, the companies said.
