Uber Technologies Inc has announced a deal with rival Delivery Hero to acquire foodpanda business in $1.25 billion agreement.
The purchase of Delivery Hero’s foodpanda brand will also see Uber buying a minority stake in the food delivery group, sending Delivery Hero’s shares up by 20%.
The 10-figure agreement is split by two separate purchases: Uber to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950 million in cash as well as Uber purchasing $300 million in newly issued ordinary shares of Delivery Hero.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said:
“In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders.”
The deal plans to combine Uber’s global expertise in operating a high-efficiency marketplace with foodpanda’s extensive coverage across Taiwan and its relationships with local brands.
The deal will also give consumers increased choice across food types and price points by bringing the complementary groups of merchants on Uber Eats and foodpanda onto a combined platform.
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, said:
“Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape. We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead.”
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