Movements among the big players in on-demand meal delivery are shaping the global landscape. Uber has reached an agreement to acquire Delivery Hero’s Taiwan unit, Foodpanda, for 880 million euros and to take a 2.98% stake in Delivery Hero’s equity for 278 million euros. The news sent Delivery Hero’s shares higher, climbing about 20.66% to 30.55 euros per share on the German DAX index.
Foodpanda Taiwan’s acquisition is subject to regulatory approval and standard closing conditions and is expected to finalize in the first half of 2025.
“To build a globally leading service, we concluded that resources should be focused on other parts of our global footprint where we believe we can deliver the greatest impact for customers, suppliers, and riders,” said Niklas Östberg, CEO and cofounder of Delivery Hero.
Uber will also buy 8.421 million new ordinary shares in Delivery Hero at a unit price of 33 euros, representing an investment of about 278 million euros and granting Uber a 2.98% stake in the German platform.
The 33-euro price per share in the deal implies a premium of 30.3% over the 25.32 euros Delivery Hero closed at on Monday’s trading session.
Newly issued shares will be subject to a 45-day lock-up period, with customary exceptions, Delivery Hero noted. The company plans to deploy the proceeds from this equity increase toward redeeming convertible bonds to strengthen its capital structure.