US firm Uber links up with Delivery Hero and acquires Taiwan-based food delivery service Foodpanda.
Uber, a US-based ride-hailing company, is venturing into the world of food delivery by acquiring a stake in Delivery Hero and buying its Asian brand Foodpanda in Taiwan. They will take over Foodpanda for $950 million (approximately €882 million). Through the acquisition of about 8.42 million new shares, Uber will gain a minority stake of roughly 3% in Delivery Hero.
The purchase of Foodpanda in Taiwan is one of the largest transactions outside the chip sector. It is scheduled to be completed in the first half of next year.
Established in Berlin, Delivery Hero is a global delivery service provider active in over 40 countries across Asia, Europe, Latin America, the Middle East, and North Africa. However, their presence in their home market of Germany is not very significant. Founded in 2011, the company initially started as a restaurant meal delivery service but later expanded to offer food and household goods. Delivery Hero has been listed on the German stock market since 2020.
Uber has been in the delivery service business for years through its division, Uber Eats. In 2020, the company managed to increase its revenue by 17% to $37.3 billion primarily due to its delivery service activities.
In Taiwan, Uber Eats and Foodpanda were competitors until now. Uber considers the highly competitive market an opportunity and sees their involvement as a "vote of confidence" in Taiwan's appeal to international companies and investors. In contrast, Delivery Hero announced that they plan to focus more on more profitable markets.
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Source: www.ntv.de
