TAIPEI: Taiwan has rejected ride-hailing giant Uber’s plan to buy Delivery Hero’s Foodpanda on the island, stating on Wednesday that the deal would significantly harm market competition.

The US ride-hailing giant was aiming to acquire Foodpanda Taiwan by the first half of 2025 for US$950 million, merging the top two players in Taiwan’s food delivery market.

“If Uber acquires Food­panda, it will be completely unrestrained by competition,” Taiwan’s Fair Trade Commission (FTC) vice chairman Chen Chi-ming told a press conference.

“The disadvantages to market competition from this merger far outweigh its economic benefits,” Chen said, adding that the merged companies’ market share would exceed 90pc.

“No corrective measures could sufficiently ensure competition would be maintained,” he said.

Uber had described the deal, announced in May, as one of Taiwan’s largest international deals outside the semiconductor industry.

Chen said the FTC conducted an economic analysis to assess the merger’s impact on competition, and received over 600 responses from food delivery platforms and relevant agencies.

Taiwan’s delivery trade union welcomed the FTC’s decision, with spokesperson Su Po-hao saying it secures “greater benefits for the future of the food delivery industry”.

The union had argued that the merger would have created a monopoly and led to widespread losses for delivery riders, vendors and consumers.

The companies have also reached a separate agreement for Uber to buy US$300 million in newly issued ordinary shares of Delivery Hero, according to May’s statement.

Published in Dawn, December 26th, 2024