{"id":647665,"date":"2024-12-25T15:50:26","date_gmt":"2024-12-25T12:50:26","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/taiwan-blocks-uber-foodpanda-merger-over-monopoly-concerns\/"},"modified":"2024-12-25T15:50:26","modified_gmt":"2024-12-25T12:50:26","slug":"taiwan-blocks-uber-foodpanda-merger-over-monopoly-concerns","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/taiwan-blocks-uber-foodpanda-merger-over-monopoly-concerns\/","title":{"rendered":"#Taiwan blocks Uber-Foodpanda merger over monopoly concerns"},"content":{"rendered":"
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\n \"Uber\"
\n Credit: Pixabay\/CC0 Public Domain
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Taiwan has rejected ride-hailing giant Uber’s plan to buy Delivery Hero’s Foodpanda on the island, stating on Wednesday that the deal would significantly harm market competition.<\/p>\n

The US ride-hailing giant was aiming to acquire Foodpanda Taiwan by the first half of 2025 for US$950 million, merging the top two players in Taiwan’s food delivery market.<\/p>\n

“If Uber acquires Foodpanda, it will be completely unrestrained by competition,” Taiwan’s Fair Trade Commission (FTC) vice chairman Chen Chi-ming told a press conference.<\/p>\n

“The disadvantages to market competition from this merger far outweigh its economic benefits,” Chen said, adding that the merged companies’ market share would exceed 90 percent.<\/p>\n

“No corrective measures could sufficiently ensure competition would be maintained,” he said.<\/p>\n

Uber had described the deal, announced in May, as one of Taiwan’s largest international deals outside the semiconductor industry.<\/p>\n

Chen said the FTC conducted an economic analysis to assess the merger’s impact on competition, and received over 600 responses from food delivery platforms and relevant agencies.<\/p>\n

Taiwan’s delivery trade union welcomed the FTC’s decision, with spokesperson Su Po-hao saying it secures “greater benefits for the future of the food delivery industry”.<\/p>\n

The union had argued that the merger would have created a monopoly and led to widespread losses for delivery riders, vendors and consumers.<\/p>\n

The companies have also reached a separate agreement for Uber to buy US$300 million in newly issued ordinary shares of Delivery Hero, according to May’s statement.<\/p>\n

\n \u00a9 2024 AFP\n <\/p>\n

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\n Citation<\/strong>:
\n Taiwan blocks Uber-Foodpanda merger over monopoly concerns (2024, December 25)
\n retrieved 25 December 2024
\n from https:\/\/techxplore.com\/news<\/a>\/2024-12-taiwan-blocks-uber-foodpanda-merger.html\n <\/p>\n

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