Uber has decided to terminate its $950 million acquisition bid for Delivery Hero’s foodpanda Taiwan due to regulatory hurdles. Plus, Deliveroo has exited the Hong Kong market after nine years. It seems it has not been a good situation for the East Asian food delivery industry. Here’s the scoop.
Uber says goodbye to foodpanda Taiwan
The good days of foodpanda Taiwan have ended as Uber has decided to call off its $950 million bid for Delivery Hero. But here’s the catch: Taiwan’s authorities decided on this.
In December, Taiwan actually blocked the deal out of anti-competitive concerns. The Taiwanese Fair Trade Commission argued that the buyout of foodpanda, which was Uber’s main rival in the country before the acquisition, would increase the combined market share to 90 percent on the island, further incentivizing Uber to increase prices.
Uber told the media it won’t anymore appeal against this decision of Taiwan’s Fair Trade Commission. In the end, Uber will just have to pay a deal termination fee of around $250 million.
The deal was announced in May 2024, which included a distinct agreement for Uber to purchase $300 million worth of newly issued shares of the Germany-based platform.
The ending of the acquisition should not worry stakeholders and those holding key interests because it would never affect the share-purchase agreement, Delivery Hero spoke with the media.
Although food delivery companies in Asia have fought their way up again after the pandemic, they have been grappling with intense competition and thin margins since they heavily spend on discounts to retain cost-conscious customers.
Delivery Hero is a German multinational Internet food ordering and food delivery company based in Berlin in Germany. Founded in 2011, the company operates in over 70 countries internationally in Asia, Europe, Africa, South America, and the Middle East, partnering with over 500,000 restaurants.
Deliveroo exits Hong Kong
Is it the fault of delivery platforms or the East Asian market? Also in the news recently is Deliveroo, another online food delivery platform based in the United Kingdom. It is exiting Hong Kong and ceasing its operations there, effective April 7th, ending its nine-year presence in the market.
Deliveroo said the exit is due to market-specific challenges and a strategic review. If it continues operating in Hong Kong, Deliveroo says it would not align with its best shareholder interests.
According to the media, Delivery Hero, the company that owns foodpanda, which has terminated its deal with Uber, will integrate Deliveroo’s customers, riders, and selected restaurant and grocery partners into its platform.
Hailing from the United Kingdom, Deliveroo has operations not only in this country but also in France, Belgium, Ireland, Singapore, Italy, Hong Kong, the United Arab Emirates, Qatar, and Kuwait. Formerly, countries Germany, Taiwan, the Netherlands, Spain, and Australia were part of its operations.
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