Taiwan’s Fair Trade Commission (FTC) has blocked Uber Technologies’ $950 million purchase of Delivery Hero’s Foodpanda business on the island, citing anti-competition concerns.
The FTC announced the decision on Wednesday, stating that the deal would harm market competition by eliminating the rivalry between Taiwan’s main food delivery competitors, UberEats and Foodpanda.
FTC Vice Chairman Chen Chih-min said the merger would give UberEats less pressure to compete, making it easier to raise prices for consumers and increase commissions for restaurants. He added that the combined market share of UberEats and Foodpanda in Taiwan would exceed 90%.
The deal, announced in May, included a separate agreement for Uber to buy $300 million worth of newly issued shares from Delivery Hero. Uber expected the acquisition to add $150 million annually to its delivery business’s adjusted core profit within a year of closing, which was expected in early 2025.
Foodpanda had reported break-even adjusted core earnings in Taiwan for the year ending March 31, 2024. While food delivery platforms form a small part of Taiwan’s overall food market, the FTC emphasized the importance of maintaining competition in this sector.
