Uber Technologies Inc reaffirmed its commitment to Taiwan following the rejection of its US$950 million bid to acquire Delivery Hero SE's Foodpanda business on the island by Taiwan's anti-trust regulator. While disappointed with the decision, Uber said it will continue to invest in Taiwan, one of the world's fastest-growing food delivery markets. Berlin-based Delivery Hero stated that Uber may appeal the ruling or abandon the deal.

The Fair Trade Commission (FTC) Vice Chairman, Chen Chih-min, explained during a briefing in Taipei that the merger would result in a market share exceeding 90% for Uber Eats and Foodpanda combined. "The main competition for Uber Eats comes from Foodpanda," he said, adding that the merger's disadvantages from competitive restraints outweighed the potential economic benefits. The FTC noted that the combined entity would lack competitive pressures, increasing the likelihood of higher prices for consumers and restaurants.

Uber had planned to finalise the all-cash acquisition by mid-2025, marking a significant retreat for Delivery Hero from the Asian market and representing one of Taiwan's largest non-chip industry deals. However, the FTC, after holding multiple public hearings and conducting surveys, determined it would be challenging for potential rivals to enter the market, undermining assurances from both companies about fostering competition.

Despite the ruling, Uber maintained that the proposed merger would have provided significant benefits to its delivery partners, consumers, and Taiwan's economy. In a Chinese-language statement, the company highlighted its belief that the combination would create greater value for all stakeholders. Previously, both Uber and Delivery Hero had emphasised that the takeover was contingent on regulatory approval.

In their joint announcement earlier this year, the companies said the merger would complement their respective strengths, with Uber Eats dominating northern Taiwan and major urban centres, while Foodpanda had a comparative edge in southern Taiwan and smaller cities. However, the FTC's findings suggested the merger would lead to reduced market competition, which they deemed unacceptable.

This rejection follows another major deal halted by Taiwanese regulators. Earlier this month, the Financial Supervisory Commission blocked CTBC Financial Holding Co's multibillion-dollar bid to acquire Shin Kong Financial Holding Co, reflecting heightened scrutiny over large consolidations in Taiwan.

Delivery Hero has yet to confirm its next steps, leaving questions about the future direction of its operations in Taiwan. Meanwhile, Uber remains focused on bolstering its presence in the region despite the setback.

Bloomberg

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