Taiwan’s competition watchdog quashes Grab’s acquisition of foodpanda in Taiwan

The Taiwan Fair Trade Commission (TFTC) has rejected Grab's acquisition of foodpanda in Taiwan, citing competition concerns. The watchdog identified issues stemming from Uber's stake in Grab, which could reduce their incentives to compete and carve out distinct market shares. The commission also pointed to past conduct by Uber and Grab that raised risks of coordination between the two parties.

The barriers to entry in the food delivery market are high due to the need for substantial capital investment, a restaurant base, and a network of delivery riders and consumers. Proposed changes, such as Uber diluting its stake in Grab, restricting its board seat, and prohibiting the exchange of competitive information, were deemed insufficient to outweigh the anticompetitive effects.

Foodpanda's parent company, Delivery Hero, stated in a stock market filing that the right to appeal remains unaffected by the TFTC's decision and that they have appropriate deal protections in place, including a break fee arrangement. Grab expressed disappointment with the decision, stating that its core business in Southeast Asia remains robust and that they will continue to focus on executing their growth road map and empowering communities within their regional footprint.