Uber Applied sciences has ended its acquisition of Supply Hero’s Foodpanda in Taiwan, the Germany-based tech agency said on Tuesday.
The announcement comes roughly three months after Taiwan’s antitrust regulator blocked the deal, citing competitive issues. The Truthful Commerce Fee (FTC) mentioned that if Uber acquired Foodpanda, its market share in Taiwan would enhance to 90%, probably main to cost will increase by Uber.
Uber Eats and Foodpanda are the top players in Taiwan’s meals supply market. In a recent report, it was found that Foodpanda loved 52% market share from January 2022 to August 2023, whereas Uber Eats had 48%. Meals supply corporations like Foodomo and plenty of different fast-food supply apps make up a tiny share of Taiwan’s market share, comparatively.
Below the settlement signed on Could 14, 2024, Uber is required to pay a termination price that’s estimated to be about USD $250 million.
Uber and Supply Hero didn’t instantly reply to a TechCrunch request for remark.
When Uber announced it might purchase Foodpanda’s Taiwan division from Supply Hero, it anticipated to finish the deal within the first half of 2025. The transfer aligned with Uber Eats’ plan to develop in Asia, significantly by strengthening its presence in Taiwan. The 2 corporations additionally engaged in a separate deal through which Uber agreed to purchase $300 million of newly issued bizarre shares from Supply Hero.
The deal additionally highlighted Supply Hero’s continued withdrawal from that very same market. On the time, Supply Hero was attempting to dump a bundle of its different Southeast Asian operations — together with in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand — to an undisclosed third occasion. In September 2023, it ended those discussions, saying in a press release that the “resolution to terminate negotiations after months of discussions was taken after cautious consideration.”
Supply Hero’s meals supply division competes with Seize in Southeast Asia.
In September, its Foodpanda unit staged a layoff geared toward streamlining operations forward of a possible sale. The cuts adopted earlier staffing layoffs in 2022 and 2023.
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