Uber announced on Tuesday a $1.25 billion deal to take over Delivery Hero's foodpanda business in Taiwan and buy new shares in the German firm in a deal that would boost liquidity of the delivery specialist grappling with rising competition in Asia. Asia has become Delivery Hero's biggest market after its $4 billion deal in South Korea in 2019 but the company has been trying to divest some of its assets in the region to improve profitability. While food delivery services in Asia have largely rebounded from a slowdown following the pandemic boom, many firms are now grappling with thin margins as they spend heavily in offering discounts and promotions to retain consumers who have become wary of rising inflation and cost of living.
Asia has become Delivery Hero's biggest market after its $4 billion deal in South Korea in 2019 but the company has been trying to divest some of its assets in the region to improve profitability. While food delivery services in Asia have largely rebounded from a slowdown following the pandemic boom, many firms are now grappling with thin margins as they spend heavily in offering discounts and promotions to retain consumers who have become wary of rising inflation and cost of living.
SAN FRANCISCO & BERLIN, May 14, 2024--Uber Technologies, Inc. (NYSE: UBER) and Delivery Hero SE (FSE: DHER) have reached an agreement for Uber to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950 million in cash. The acquisition of foodpanda Taiwan is subject to regulatory approval and other customary closing conditions and is targeted to close in the first half of 2025. Separately, the companies have also entered into an agreement for Uber to purchase $300 million in newly