Southeast Asia’s largest ride-hailing and delivery company, Grab, announced on Monday that it will buy Foodpanda’s delivery business in Taiwan for $600 million in cash. This is the company’s first move to expand outside Southeast Asia.
By buying the Taiwan business, the Singapore-based company will gain a strong presence in a new market. This step is part of Grab’s bigger plan to grow beyond its current region and expand its services further.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “The foodpanda team in Taiwan has built a fantastic business, and we thank them for their hard work. A transaction like this is a significant undertaking, but we are delighted to have agreed this cash deal, which reflects the strength and attractiveness of the business in Taiwan. This divestment is a key first step in our ongoing strategic review. This deal comes as we are transforming into an Everyday App by improving the user proposition and offering more verticals to capture more of our customers’ needs throughout the day”.
Anthony Tan, Group CEO and Co-Founder of Grab, said: “This acquisition will mark Grab’s expansion into Taiwan, our 9th market and first outside of Southeast Asia. This is a natural next step for Grab, as our experience in Southeast Asia is a direct fit for this market. We see a significant opportunity to grow the food and groceries delivery scene here”.
Because this deal separates the Taiwan food delivery business from Delivery Hero’s global system, it needed a lot of planning and discussions to make sure everything continues to run smoothly during the transition.
Until the deal is completed, Delivery Hero will keep running the business as usual and continue providing the best service to customers and vendors. After the deal is finalized, Foodpanda’s customers, vendors, and delivery partners in Taiwan will gradually move to Grab.
Delivery Hero is one of the world’s largest local delivery platforms, operating in about 65 countries across Asia, Europe, Latin America, the Middle East, and Africa. The company started in 2011 as a simple food delivery service and has now grown into a global platform with its own delivery network in many regions.
Today, Delivery Hero is also focusing on quick commerce, which is the next step in online shopping. Its goal is to deliver groceries and everyday items to customers very quickly—usually within an hour, and often in just 20 to 30 minutes.
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