Uber to take over Delivery Hero’s food panda biz in Taiwan for $1.25 bn

Uber announced on Tuesday a $1.25 billion deal to take over Delivery Hero’s foodpanda business in Taiwan and buy new shares in the German firm in a deal that would boost liquidity of the delivery specialist grappling with rising competition in Asia.

Asia has become Delivery Hero’s biggest market after its $4 billion deal in South Korea in 2019 but the company has been trying to divest some of its assets in the region to improve profitability.

While food delivery services in Asia have largely rebounded from a slowdown following the pandemic boom, many firms are now grappling with thin margins as they spend heavily in offering discounts and promotions to retain consumers who have become wary of rising inflation and cost of living.