Uber Technologies, Inc. and Delivery Hero SE have reached an agreement for Uber to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950 million in cash.

The acquisition of foodpanda Taiwan is subject to regulatory approval and other customary closing conditions and is targeted to close in the first half of 2025, Uber said in a statement on Monday.

Separately, the companies have also entered into an agreement for Uber to purchase $300 million in newly issued ordinary shares of Delivery Hero.

Until closing, Delivery Hero is dedicated to continue operating foodpanda Taiwan as before, offering the best possible service for its customers and vendors.

In the period following closing, foodpanda’s local consumers, merchants, and delivery partners will be transitioned to Uber Eats.

Due to its existing presence in Taiwan, Uber said it is best placed to build upon the significant local operations developed by Delivery Hero and foodpanda over the past years, and invest further into an improved experience for consumers, merchants, and delivery partners.

“The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years,” said Niklas Östberg, Chief Executive Officer and Co-Founder of Delivery Hero.

“In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders,

“This deal gives foodpanda an exciting runway in Taiwan and we wish them all the best in their next chapter,” he added.

According to the statement, the deal will combine Uber’s global expertise in operating a high-efficiency marketplace with foodpanda’s extensive coverage across Taiwan and its relationships with beloved local brands.

The deal will also give consumers greater choice across food types and price points by bringing the complementary groups of merchants on Uber Eats and foodpanda onto a combined platform.

For example, consumers stand to benefit from the combination of Uber’s wider selection across northern Taiwan and in major urban centers with foodpanda’s comparative strength in southern Taiwan and in smaller cities.

Better service for consumers helps drive more orders from merchants, and more orders from merchants means more opportunities for delivery partners to earn.

“Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners,” said Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber.

“Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape,

“We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead,” he added.

Once completed, this deal would be one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry.

Uber said its decision to commit to this considerable increase in its Taiwan investment is a concrete vote of confidence in the continued long-term attractiveness of Taiwan for international companies and investors.

Delivery Hero is the world’s leading local delivery platform, operating its service in around 70 countries across Asia, Europe, Latin America, the Middle East and Africa.

The company started as a food delivery service in 2011 and today runs its own delivery platform on four continents.

Additionally, the firm is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 20 to 30 minutes.

Headquartered in Berlin, Germany, Delivery Hero has been listed on the Frankfurt Stock Exchange since 2017 and is part of the MDAX stock market index.

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