Taiwan’s Fair Trade Commission (FTC) recently moved to block the US$950 million deal between Uber and Foodpanda, which was acquired from Delivery Hero, on the grounds that the deal could raise competition concerns.
According to Taiwan FTC Vice Chairman Chen Chi-ming, the merger would reduce competition and give UberEats a dominant position in Taiwan’s food delivery market, which could drive up prices and commissions.
He also stressed that the merger would cause a competitive disadvantage that far outweighs the economic benefits.
The FTC’s decision was strongly supported by Taiwan’s delivery unions, who said that the merger would lead to a monopoly and losses for delivery drivers, vendors, and consumers.
So far, Uber and Foodpanda have not issued any statements on the decision.
