Uber abandons bid to acquire rival Foodpanda in Taiwan

Taipei, March 12 (CNA) Delivery platform Uber Eats has ended its proposed acquisition of rival service Foodpanda in Taiwan following opposition from local regulators, Foodpanda's parent company Delivery Hero SE has confirmed.

Uber Technologies Inc. announced on May 14, 2024 that it had reached an agreement to acquire Delivery Hero SE's Foodpanda delivery service in Taiwan for US$950 million.

The planned merger -- which would have given Uber Eats a market share of over 90 percent in Taiwan -- drew immediate scrutiny, and was ultimately rejected by Taiwan's Fair Trade Commission (FTC) on Dec. 25 on the grounds that it would restrict competition.

In a statement issued late Tuesday (Central European Time), the Germany-based Delivery Hero SE confirmed that Uber had decided to terminate the deal following the FTC's decision and the expiration of the relevant appeal period.

Under the terms of the original March 14 agreement, Uber would have been required to pay a termination fee estimated to be around US$250 million, the company said.

Delivery Hero "remains focused on supporting Foodpanda's position in Taiwan," it said.