Uber to Buy Delivery Hero's Taiwan Business for $950 Million — Update
By Ben Otto
Uber Technologies will buy Delivery Hero's Foodpanda delivery business in Taiwan for $950 million cash, marking a major expansion for the U.S. company in Asia.
The companies aim to close the deal--one of the largest international acquisitions in Taiwan outside of the semiconductor industry--in the first half of 2025, subject to regulatory approval, they said late Monday.
Uber will separately purchase $300 million in newly issued ordinary shares of Berlin-based Delivery Hero, they added.
The deal comes after San Francisco-based Uber last week said that it swung to a first-quarter loss but that delivery bookings at its Uber Eats segment were slightly higher than analysts' expectations, even as ride bookings were weaker than anticipated.
It also comes several months after Delivery Hero ended talks with an undisclosed potential buyer to sell its Foodpanda business in Southeast Asia markets, where it competes with rivals including U.S.-listed Grab Holdings. Asia is Delivery Hero's largest market, accounting for about 36% of revenue in 2023.
Foodpanda's Taiwanese consumers, merchants and delivery partners will be transitioned to Uber Eats, the companies said.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
May 14, 2024 01:18 ET (05:18 GMT)
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