Uber Technologies Inc. expressed disappointment after Taiwan’s Fair Trade Commission (FTC) rejected its proposed acquisition of Delivery Hero SE’s Foodpanda unit on the island.
The deal, valued at $950 million, was intended to expand Uber Eats’ presence in Taiwan, one of the world’s fastest-growing food delivery markets. Despite the setback, Uber remains committed to investing in Taiwan and its food delivery sector, though the company has not mentioned plans to appeal the decision.
The FTC’s decision was based on concerns that the acquisition would significantly reduce competition in the food delivery market. Vice Chairman Chen Chih-min explained that if the merger were allowed, Uber and Foodpanda would control over 90% of the market share. This concentration would limit the competitive pressures that drive down prices and spur innovation, Chen said, ultimately leading to disadvantages for consumers and restaurants.
“The combined business would lack competitive pressures, therefore increasing incentives for it to raise prices for consumers and restaurants,” Chen noted during a briefing in Taipei.
Uber had hoped to finalize the all-cash acquisition by the first half of 2025, marking a major foreign investment in Taiwan outside of the semiconductor industry. The deal would have also been a strategic move for Delivery Hero to retreat from the Asian market. However, the FTC’s ruling makes it unlikely that the transaction will proceed as planned.
Despite the rejection, Uber and Delivery Hero emphasized that the merger would have benefited consumers, delivery partners, and Taiwan’s economy, claiming it would have complemented each company’s regional strengths. Uber, which has a stronger presence in northern Taiwan and major urban areas, planned to integrate Foodpanda’s strengths in southern Taiwan and smaller cities.
The proposed merger also faced opposition from organized labor groups, which raised concerns about the potential negative impacts on workers. Taiwanese regulators have recently blocked other significant mergers, further underscoring their commitment to preserving market competition.
With the deal blocked, Uber now faces the decision of whether to appeal the FTC’s decision or walk away from the acquisition. Neither Uber nor Delivery Hero has provided further comments since the FTC’s ruling, leaving the next steps uncertain.
