Uber Technologies Inc. is buying Delivery Hero SE’s Foodpanda business in Taiwan for $950 million, shoring up its control of a key Asian market as it seeks to expand in the region.
The deal unveiled Tuesday marks one of the biggest takeovers in Taiwan outside of semiconductors. Uber aims to combine the two businesses under the Uber Eats brand, and separately agreed to purchase $300 million of newly issued Delivery Hero stock. Delivery Hero said it hoped to use the proceeds from the deal to buy back convertible bonds.
Uber is grappling with uncertainty over its ridesharing businesses in the US and Latin America. Gross bookings in the first quarter missed analysts’ estimates, while rivals including Lyft Inc. and DoorDash Inc. beat Wall Street’s expectations last quarter. Investors are focused on whether Uber can sustain double-digit growth with new product offerings.
Uber Eats has grown in major international delivery markets including Australia, France and Mexico, while adding new retail and grocery partners to its platform. A nascent but growing advertising business has also helped expand margins for the delivery business. ADVERTISEMENT CONTINUE READING BELOW Consumers and sellers alike were concerned about the potential merger of two dominant platforms, Taiwan’s Fair Trade Commission Vice-Chair Chen Chih-min said, local media outlet UDN reported.