Uber-Foodpanda Merger to Dominate 90% of Taiwan's Food Delivery Space

FTC Vice Chairman Chen Chi-ming announced the decision during a press conference on Wednesday, stating that the Uber-Foodpanda merger would result in a market share exceeding 90%, significantly reducing competition. "Post-merger, UberEats would be less constrained by competition, leading to higher prices for consumers and increased commissions for restaurant operators," Chen explained. The FTC concluded that the merger's disadvantages to market competition far outweighed its potential economic benefits.

Taiwan's Fair Trade Commission (FTC) has rejected Uber's proposed acquisition of Delivery Hero's Foodpanda operations in Taiwan, citing concerns over market competition. The deal, valued at $950 million and slated for completion by mid-2025, would have merged the island's two leading food delivery platforms, UberEats and Foodpanda. 

The Commission conducted an in-depth economic analysis and gathered over 600 responses from stakeholders, including food delivery platforms and regulatory agencies, to assess the merger's implications. 

Taiwan's delivery trade union welcomed the FTC's decision, with spokesperson Su Po-hao emphasizing that it protects the interests of riders, vendors, and consumers while ensuring a more competitive industry landscape. 

In addition to the proposed acquisition, Uber and Delivery Hero have a separate agreement for Uber to purchase $300 million worth of newly issued ordinary shares of Delivery Hero, as disclosed in a statement in May. Despite the setback, Uber described the original acquisition plan as one of Taiwan's largest international deals outside the semiconductor sector.