Delivery Hero Sells Foodpanda to Uber Technologies for $950 Million: A Shift in Focus for the German Online Food Delivery Giant

Delivery Hero, the German online food delivery giant, has announced its plans to sell its Taiwanese business, Foodpanda, to Uber Technologies for $950 million in cash. This marks a shift in focus for Delivery Hero as it looks to redirect its resources to other markets where they can have a greater impact on customers, vendors and riders.

Foodpanda is a major player in the online food and grocery delivery industry in Asia, with operations in countries like Singapore, Malaysia, Thailand, The Philippines and Hong Kong. Uber Eats currently dominates the food delivery market in Taiwan with a 48% market share by order volume compared to Foodpanda’s 52%.

Niklas Östberg, co-founder and CEO of Delivery Hero expressed his excitement about the deal and stated that the company needs to focus its resources on areas where they can make a larger impact. Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber echoed this sentiment stating that the acquisition would help them grow in a sector that is still relatively small in terms of online food delivery platforms.

The acquisition is expected to close in the first half of 2023 pending regulatory approval. Additionally, Delivery Hero will sell $300 million in newly issued ordinary shares to Uber as part of a separate agreement. This move is expected to be one of the largest international deals in Taiwan excluding those in the semiconductor chip industry.

Despite previously considering selling its Foodpanda business in select Southeast Asian markets, Delivery Hero has decided to retain its presence in that region. The company remains committed to the online food delivery sector and sees potential for growth and expansion in the future.