Uber Eats is giving up its plan to acquire Foodpanda’s Taiwan delivery service and must pay a fee of US$250 million for canceling the agreement, reports said today.
Uber Technologies Inc announced its plan to buy Delivery Hero SE’s Foodpanda business in Taiwan for US$950 million in May last year.
The deal was prohibited by the Fair Trade Commission in December due to concerns about competition.
Photo: Bill Chen, Taipei Times
If Uber acquired Foodpanda, it would monopolize more than 90 percent of the food delivery market in Taiwan, which may lead to raised prices, Reuters and Bloomberg cited the commission as saying.
Uber was disappointed with the commission’s ruling, but would respect it and would not appeal, a spokesperson for the company said in a statement to Bloomberg.
“We remain committed to the Taiwan market and would continue to serve local consumers, businesses and delivery partners in an innovative and competitive manner,” the spokesperson said.
Taiwan remains a part of Delivery Hero’s long-term strategy, the company said.
The original deal also specified that Uber would buy US$300 million worth of Delivery Hero’s newly issued stocks.
The collapse of the merger would not affect this share purchase agreement, Delivery Hero told Reuters.
The US House of Representatives yesterday passed the PROTECT Taiwan Act, which stipulates that Washington would exclude China from participating in major global financial organizations if its actions directly threaten Taiwan’s security. The bill, proposed by Republican US Representative Frank Lucas, passed with 395 votes in favor and two against. It stipulates that if China’s actions pose any threat to Taiwan’s security, economic or social systems, the US would, “to the maximum extent practicable,” exclude China from international financial institutions, including the G20, the Bank for International Settlements and the Financial Stability Board. The bill makes it clear that China
Garbage and recycling schedules are to vary from Saturday through Sunday next week over the Lunar New Year holiday period. The following collection information is from the governments of the six special municipalities. Taipei Regular service: Sunday to Monday next week. No service: Tuesday to Thursday next week. Extra service: Friday next week. Regular service resumes: Saturday next week. New Taipei City Extra service: Sunday. Adjusted collection time: Monday next week — garbage collection is to begin in the morning and end at 6pm. No service: Tuesday to Thursday next week. Regular service resumes: Friday next week. Note: Garbage can be dropped off at 70
Taiwan’s Li Yu-hsiang performs in the men’s singles figure skating short program at the Milano-Cortina Winter Olympics, in Milan, Italy, on Tuesday. Li finished 24th with a score of 72.41 to advance to Saturday’s free skate portion of the event. He is the first Taiwanese to qualify for the free skate of men’s singles figure skating at the Olympics since David Liu in 1992.
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