Grab has agreed to acquire Delivery Hero’s Foodpanda business in Taiwan for $600 million in cash, marking the company’s first expansion outside Southeast Asia.
The deal, announced Monday, remains subject to regulatory approval and is expected to close in the second half of 2026. Grab said it plans to complete the migration of users, merchants, and driver-partners onto its platform by early 2027.
Shift In Taiwan’s Competitive Landscape
The acquisition follows a failed attempt by Uber Technologies to acquire Foodpanda’s Taiwan operations in 2025. That deal was blocked by Taiwan’s antitrust regulator due to concerns about market concentration.
At the time, Uber Eats and Foodpanda were the dominant players in Taiwan. Foodpanda held a 52% market share, while Uber Eats accounted for 48% between 2022 and 2023. Taiwan’s Fair Trade Commission said the combined entity would have controlled around 90% of the market, raising concerns about reduced competition and potential price increases.
In contrast, Grab’s acquisition would result in a combined market share of just over 50%, positioning the company as a competitor to Uber Eats rather than creating a near-monopoly.
Expansion Strategy And Market Positioning
Grab co-founder and CEO Anthony Tan said the company sees Taiwan as a natural extension of its existing operations. He noted similarities between Taiwan’s urban environment and the dense, high-traffic cities where Grab operates in Southeast Asia.
Taiwan’s population of about 23 million and its demand for mobile-first services were also cited as factors supporting the expansion.
Following the acquisition, Grab expects to operate in 21 cities across Taiwan, strengthening its presence in the market.
Operational Integration And Business Scale
The transaction combines Grab’s AI-driven logistics platform with Foodpanda’s established local network. Foodpanda’s Taiwan operations generated approximately $1.8 billion in gross merchandise value, according to the company.
The integration is expected to expand Grab’s delivery capabilities while maintaining Foodpanda’s existing reach in the region.
Featured image credits: Flickr
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