Taiwan’s Fair Trade Commission (FTC) has blocked Uber Technologies’ $950 million purchase of the island’s Delivery Hero subsidiary Foodpanda, citing competition concerns.
The Federal Trade Commission announced the decision on Wednesday, stating that the deal would hurt competition in the market by eliminating rivalry between Taiwan’s main food delivery competitors, UberEats and Foodpanda.
The merger will give UberEats less pressure to compete, making it easier to raise prices for consumers and increase commissions for restaurants, said Federal Trade Commission Vice Chairman Chen Chih-min. He added that the combined market share of UberEats and Foodpanda in Taiwan will exceed 90%.
The deal, announced in May, included a separate agreement for Uber to purchase $300 million worth of newly issued shares of Delivery Hero. Uber expected the acquisition to add $150 million annually to adjusted underlying earnings for its ride-hailing business within a year of closing, which was expected in early 2025.
Foodpanda reported adjusted core earnings in Taiwan for the year ending March 31, 2024. While food delivery platforms make up a small portion of the overall food market in Taiwan, the FTC emphasized the importance of remaining competitive in the sector.