Uber Eats is acquiring its biggest rival in Taiwan.
The delivery company said Tuesday that it has a deal to buy the Taiwan business of Foodpanda, a Singapore-based restaurant delivery service, for $950 million in cash.
It also plans to invest $300 million in Foodpanda’s parent company, Berlin-based Delivery Hero, giving it a less than 3% stake in the company.
The acquisition is expected to close in the first half of 2025, at which point the Foodpanda app will be absorbed into Uber Eats in Taiwan.
The deal will make Uber Eats the dominant player in Taiwan’s food delivery market, which is currently split almost evenly between Uber Eats and Foodpanda, according to a report by Measurable AI.
Foodpanda was founded in 2012 in Singapore and soon expanded to other Asian countries. In 2016, it was acquired by Delivery Hero, one of the largest food delivery companies in the world with operations in Europe, Asia, the Middle East and South America.
Uber has a relatively small but growing business in Asia. Revenue in that market increased more than 27% last year, to $4.4 billion, according to SEC filings. That figure includes both Uber's delivery and ride-sharing businesses.
Foodpanda, meanwhile, generated about $1.7 billion in Taiwan during the 12 months ended in March, according to Delivery Hero. The company said exiting Taiwan would allow it to focus on its operations elsewhere.
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