gppbet Taiwan blocks Uber-Foodpanda merger over monopoly concerns
Updated:2024-12-27 05:43 Views:69
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isb388 slotTaipei, Taiwan — 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 Philippine Hotel Owners Association Inc. (PHOA) revealed their target on Wednesday, October 16, during the official unveiling of the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028 at the Westin Manila Hotel in Ortigas.
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.
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“The disadvantages to market competition from this merger far outweigh its economic benefits,” Chen said, adding that the merged companies’ market share would exceed 90 percent.
Article continues after this advertisement“No corrective measures could sufficiently ensure competition would be maintained,” he said.
Article continues after this advertisementUber had described the deal, announced in May, as one of Taiwan’s largest international deals outside the semiconductor industry.
Article continues after this advertisementChen 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”.
Article continues after this advertisementThe 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.
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