Delivery Hero, a leading food delivery company, announced on Tuesday that they will be selling their foodpanda branded takeaway business in Taiwan to ride-hailing company Uber for $950 million in cash. This strategic move signifies a shift in focus for both companies as Delivery Hero seeks to divest some of its overseas businesses to enhance profitability.
Niklas Ostberg, CEO and co-founder of Delivery Hero, expressed the need to allocate resources where they can have the most significant impact for customers, vendors, and riders. The company had been exploring options to sell its foodpanda business in specific Southeast Asian markets as part of a broader restructuring effort. However, discussions for the potential sale of those operations were terminated by the company in February.
As part of the agreement between Uber and Delivery Hero, Uber will also purchase $300 million in newly issued shares of Delivery Hero at 33 euros each. This will result in Uber owning approximately 2.98% of Delivery Hero. The deal aims to solidify the partnership between the two companies and enhance their presence in the global market.
Despite online food delivery platforms representing a small portion of Taiwan’s competitive food delivery market, the foodpanda operations in Taiwan managed to achieve break-even in terms of adjusted core earnings over the past 12 months. The business processed transactions valued at 1.6 billion euros during that period, indicating its significance in the market.
Uber and Delivery Hero anticipate finalizing the acquisition by the first half of 2025. This collaboration is expected to bring mutual benefits to both companies and strengthen their position in the food delivery industry. The partnership will unlock new opportunities for growth and expansion while catering to the evolving needs of customers in Taiwan and beyond.
Investors have shown concerns about Delivery Hero’s cash position due to growing investor concerns about this issue
