Delivery Hero shares surge as Uber buys Taiwan business for $950m

14th May 2024 08:35

(Sharecast News) - Shares in Delivery Hero surged by more than 20% after it agreed to sell its Foodpanda delivery business in Taiwan to ride-hailing giant Uber for $950m.

Uber, which is looking to expand its food delivery operations in the region, said it wants to complete the deal by the first half of 2025.

Separately, the companies also entered into an agreement for Uber to buy $300m in new Delivery Hero shares.

The deal would be one of the largest ever international purchases in Taiwan outside of the semiconductor sector, Uber said in a statement.

"Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape," said Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber.

Niklas Ostberg, Delivery Hero chief executive and co-founder, said the company had decided to focus resources on other markets where it "can have the largest impact for customers, vendors and riders".

Reporting by Frank Prenesti for Sharecast.com