(Dec 26): Uber Technologies Inc said it remained committed to Taiwan after the island’s anti-trust regulator rejected its plan to buy Delivery Hero SE’s Foodpanda business on the island for US$950 million (RM4.26 billion).

Uber said in a statement that it’s disappointed by the decision, but will continue to invest in Taiwan as one of the world’s fastest-growing food-delivery markets. It didn’t mention any plans for an appeal. Delivery Hero, based in Berlin, said in a statement that Uber may now appeal or opt to walk away.

“The main competition for Uber Eats comes from Foodpanda,” Fair Trade Commission (FTC) vice chairman Chen Chih-min said at a briefing in Taipei on Wednesday, noting 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.”

Uber had aimed to complete the all-cash deal by the first half of 2025. The acquisition would have been one of Taiwan’s largest outside of the chip industry, marking a retreat for Delivery Hero from Asia.

The FTC earlier this month indicated its concerns about the deal and said it wanted to assess the economic impact, and Chen said on Wednesday the commission held multiple public hearings and surveyed many on the island.

Despite the assurances of both companies, the FTC concluded that 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.  

Uber still believes their proposed combination would bring the best benefit to their delivery and partners, along with consumers and Taiwan’s economy, its Chinese-language statement said.

Uber and Delivery Hero are the two dominant players in the market, and had previously stressed the takeover was contingent on regulatory approval.

In their May joint announcement, the companies said Uber had a wider selection across northern Taiwan and in major urban centers, which could complement Foodpanda’s “comparative strength” in southern Taiwan and smaller cities.  

This is the second big takeover stopped by Taiwan regulators recently, after the Financial Supervisory Commission rejected CTBC Financial Holding Co’s multibillion-dollar bid for smaller rival Shin Kong Financial Holding Co.

Uploaded by Chng Shear Lane