Taiwan’s authorities lately are looking at the East Asian country’s business landscape from a different perspective. First, foodpanda Taiwan cannot expand its operations with Grab, as the deal has been blocked by the Taiwanese Fair Trade Commission. And, they are blaming it upon Uber’s ties with these businesses. This newsroom has more.
No complete acquisition yet
Taiwan’s Fair Trade Commission this week did not agree to Grab’s proposed $600 million acquisition of foodpanda Taiwan, citing concerns that Uber may undermine competition in the nation’s food delivery market.
According to the Fair Trade Commission commissioner, Shin Chih-chung, three commissioners voted to block the deal, with one favoring approval and the fifth deciding to recuse themselves.
In Taiwan, foodpanda and Uber Eats are the food delivery apps in operation, while Grab dominates Southeast Asia. Grab will be able to enter the Taiwanese food delivery market through Uber.
“The equity ties, overlapping board membership, and history of business cooperation between Grab and Uber would reduce Grab’s incentive and ability to compete with Uber Eats in Taiwan,” Shin stated.
The Commissioner further stated that Taiwan’s food delivery market was already “highly-concentrated,” taking into consideration network effects and high barriers to entry, thus making it difficult for new competitors to break-in.
Despite the fact that foodpanda may leave Taiwan with this decision being made, Shin does not care, and remains firm on their stance that Uber’s influence over Taiwan’s food delivery market is a big concern.
No, no, no
Here are the statements from the parties involved. Grab expressed “disappointment” with the decision, of course, specifying that it would keep the Singaporean super-app from introducing “innovative services, reasonable earning opportunities and improved service standards” for consumers, delivery workers, and merchants in Taiwan as previously planned.
Interestingly enough, foodpanda Taiwan and Uber Eats Taiwan did not comment, or left with no reaction.
However, delivery workers are delighted with the decision. They are saying that reduced competition could give dominant operators greater influence over delivery workers’ pay, restaurant commission fees, and consumer preferences. They also don’t think that the decision would hamper business.
In a previous report on Ridesharingforum.com, Grab had initially acquired foodpanda Taiwan prior to this notice from the authorities.
Then, the dapper Anthony Tan, the co-founder and CEO of Grab, mentioned in a statement, “Our longstanding expertise in managing complex delivery logistics for dense and high-traffic cities is well-suited for Taiwan’s bustling cities. Taiwan’s population of approximately 23 million also has a high demand for mobile-first services, similar to the Southeast Asian consumers whom Grab serves every day. We see a significant opportunity to grow the food and groceries delivery scene here.”
What are your thoughts? Comment now here on RSF, and share this news with your family and friends. Happy holidays! ‘Til then!