Uber Eats' ambitious plan to acquire Foodpanda Taiwan has collapsed, with the deal officially terminated after Taiwan’s Fair Trade Commission (FTC) blocked the merger over concerns it would harm market competition.
The failed acquisition will now cost Uber a staggering $250 million in termination fees.
The two food delivery giants had announced the acquisition in May 2023, aiming to consolidate their services in Taiwan.
However, after months of scrutiny, the FTC ruled in late 2024 that the proposed merger would limit competition and negatively impact the overall market.
As a result, Foodpanda’s parent company, Germany-based Delivery Hero, announced on January 11 that the deal had been officially called off.
In a statement, Delivery Hero reaffirmed Taiwan's importance in its long-term business strategy, despite the failed acquisition.
Uber, on the other hand, stated that it respected the regulatory decision and would not appeal.
A spokesperson for Uber emphasized that the company remains committed to Taiwan’s market and will continue to enhance its services for consumers, merchants, and delivery partners through innovation and competition.
This development highlights the increasing scrutiny faced by multinational tech companies in expanding their market dominance.
The case also raises broader concerns about whether global corporations should be allowed to consolidate power in emerging markets, potentially stifling competition and limiting consumer choices.