Delivery Hero’s foodpanda delivery business to be acquired by Uber Eats for $950 M

A deal has been reached by Uber Technologies, Inc. and Delivery Hero SE for Uber to pay $950 million in cash for Delivery Hero’s foodpanda delivery business in Taiwan.

Uber announced on Monday that it is aiming to close the acquisition of foodpanda Taiwan in the first half of 2025, subject to regulatory approval and other customary closing conditions.

Additionally, the two businesses have an agreement in place for Uber to buy $300 million worth of freshly issued common shares of Delivery Hero.

Delivery Hero is committed to carrying on with foodpanda Taiwan’s operations until it closes, providing the greatest support for both its vendors and customers.

Following closure, local customers, merchants, and delivery partners of foodpanda will switch to Uber Eats.

Uber claimed that because of its established presence in Taiwan, it is in the best position to expand on the noteworthy local operations that Foodpanda and Delivery Hero have built over the previous few years and to make additional investments in a better delivery partner, merchant, and customer experience.

“The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years,” said Niklas Östberg, Chief Executive Officer and Co-Founder of Delivery Hero.

“In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders,

“This deal gives foodpanda an exciting runway in Taiwan and we wish them all the best in their next chapter,” he added.

The announcement states that the agreement will combine foodpanda’s wide reach throughout Taiwan and its connections to well-known regional brands with Uber’s worldwide experience running a high-efficiency marketplace.

Additionally, by combining the complementary merchant groups on foodpanda and Uber Eats onto one platform, the deal will offer consumers more options in terms of food types and price points.

Customers will profit, for instance, when foodpanda’s comparative advantage in southern Taiwan and in smaller cities is combined with Uber’s greater selection in northern Taiwan and major urban centers.