Fair Trade Commission Vice Chairman Chen Chih-min reportedly said at a briefing in Taipei that Uber Eats' main competition comes from Foodpanda and that their combined market share would be over 90%.
Shares of Uber Technologies Inc (UBER) were in the spotlight on Thursday morning after Taiwan’s anti-trust regulator rejected the firm’s $950 million bid to acquire Delivery Hero’s Foodpanda, raising concerns that it might be anti-competitive.
Fair Trade Commission Vice Chairman Chen Chih-min reportedly said at a briefing in Taipei that Uber Eats' main competition comes from Foodpanda, highlighting that their combined market share would be over 90%.
“The merger would lead to far greater disadvantages from competitive restraints compared to the overall economic benefits,” Chen said according to a Bloomberg report.
If the deal had gone through, it would have been one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry.
After holding multiple public hearings and getting assurance from both firms, the FTC decided it would be difficult for potential rivals to enter the market.
“The combined business would lack competitive pressures, therefore increasing incentives for it to raise prices for consumers and for restaurants,” Chen said.
According to the Bloomberg report, Uber issued a statement expressing disappointment in the FTC’s decision but stating that it would continue to invest in Taiwan. The company, however, did not mention any intention to appeal.
Uber had earlier targeted closing the acquisition by the first half of 2025. The firm had argued that consumers would benefit from the combination of Uber’s wider selection across northern Taiwan and in major urban centers with Foodpanda’s comparative strength in southern Taiwan and in smaller cities.
"Better service for consumers helps drive more orders from merchants, and more orders from merchants means more opportunities for delivery partners to earn,” Uber said in May this year when it announced its intention to acquire the Foodpanda business.
Following the development, retail sentiment on Stocktwits dipped into the ‘bearish’ territory (36/100) from ‘neutral’ a day ago.
Despite the failed bid, retail chatter on Stocktwits wasn’t all negative.
Even in Thursday’s pre-market session, UBER shares traded flat versus Tuesday’s closing.
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