Taiwan's Fair Trade Commission (FTC) blocked Grab Holdings' proposed $600 million acquisition of Delivery Hero's Foodpanda business in Taiwan on Wednesday. The FTC cited equity and board connections between Singapore-based Grab and Uber, which operates Taiwan's other leading food delivery platform. FTC commissioner Shin Chih-chung said those connections and past business cooperation would weaken Grab's ability and incentive to compete against Uber Eats in Taiwan.
Uber Eats and Foodpanda dominate Taiwan's food delivery market. Uber owns 13.1% of Grab after withdrawing from Southeast Asia in 2018. Uber CEO Dara Khosrowshahi left Grab's board in July to facilitate Grab's acquisition of Foodpanda Taiwan. Grab said at the time that the board change demonstrated Grab's commitment to strong, independent governance in connection with the proposed acquisition.
Grab expressed disappointment with the FTC's decision. Grab said the outcome prevented Grab from bringing planned innovations, fair earning opportunities and higher service standards to Taiwan's consumers, delivery riders and merchants. The decision halts, for now, Grab's first attempt to expand beyond Southeast Asia. Grab announced the $600 million purchase in March. Grab expected completion in the year's second half. Taiwan would have been Grab's ninth market and first market beyond Southeast Asia if the acquisition had proceeded.
Legislators and delivery drivers raised concerns that the acquisition would weaken competition. Grab said on October 12, in response to public debate, that Grab had concentrated on understanding Taiwan's market. Grab said regulators faced a choice between Taiwan having one platform or two platforms capable of effective competition. Taiwan's regulators had blocked Uber's proposed acquisition of Foodpanda's Taiwan operations in 2024 because of competition concerns.
Taiwan has become a new competitive arena for delivery and e-commerce businesses. U.S.-based e-commerce company Coupang has developed Taiwan into one of Coupang's largest markets beyond South Korea. Coupang opened a fourth fulfillment center in Taiwan in March. Coupang's next-day Rocket Delivery service now reaches about 70% of Taiwan. Coupang describes the company as one of Taiwan's largest U.S. investors. Shopee, which Singapore-based Sea Limited owns, also operates extensively in Taiwan.
Taiwan Blocks Grab's $600M Foodpanda Takeover Over Uber Ties
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Taiwan's Fair Trade Commission blocked Grab's $600M Foodpanda takeover due to ties with Uber, a move that could influence the fear and greed index among investors. Legislators and drivers had warned about reduced competition. Grab said the deal would boost service standards. With altcoins to watch gaining attention, market players are closely monitoring regulatory actions in tech and crypto sectors.
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