Taiwan’s Fair Trade Commission (FTC) has prohibited Uber Technologies from proceeding with its $950 million acquisition of Delivery Hero’s Foodpanda operations in the region, citing concerns regarding potential anti-competitive effects.
Neither Uber nor Foodpanda provided immediate comments in response to inquiries made outside of standard business hours.
In a statement released on Wednesday, Delivery Hero indicated that Uber has the option to either appeal the FTC’s ruling or abandon the acquisition altogether.
During a media briefing, the commission expressed that the adverse effects of the merger would surpass any potential economic advantages, and that remedial measures would be insufficient to alleviate competition-related concerns.
Chen Chih-min, vice chairman of Taiwan’s FTC, noted, “In the food delivery platform sector, the primary competitive challenge for UberEats arises from Foodpanda. The merger would remove this competitive challenge.”
He further stated that following the merger, UberEats would face reduced competitive constraints, which could incentivize the company to increase prices for consumers and raise commissions for restaurant partners.
Chen also highlighted that the combined market share of Uber and Foodpanda in Taiwan would exceed 90 percent post-merger.
In May, Uber and Delivery Hero announced the deal in Taiwan, which included a separate agreement for Uber to acquire $300 million in newly issued shares of the German food delivery company.
Uber anticipated that the acquisition would contribute at least $150 million annually to the adjusted core profit of its delivery segment within a year of the deal’s completion, which is projected to occur in the first half of 2025.
Online food delivery platforms constitute a minor segment of Taiwan’s competitive food delivery landscape. According to the companies, Foodpanda’s operations in Taiwan achieved break-even status in terms of adjusted core earnings for the 12 months ending March 31, 2024.
