Following failed merger negotiations in March 2024, the U.S. online food ordering and delivery platform Uber Eats has agreed to acquire the German company Foodpanda’s food delivery business in Taiwan for US$950 million. The Legislature’s Economics Committee asked Fair Trade Commission (FTC) Chairperson Lee May (李鎂) to submit a report on the merger this Thursday.
Lee said she is focusing her attention on certain major factors, including market concentration, market efficiency, merger synergy, and the pricing power of the merger and acquisition parties following the deal. The review process will call for public hearings, symposiums, and opinions from restaurant owners, delivery persons, consumers, and other stakeholders. After deliberation, the FTC will approve or reject the merger depending on whether the overall economic benefits outweigh the disadvantages of restricting competition.
Legislators from both sides are closely following the merger. KMT legislator Chang Chia-chun (張嘉郡) said surveys have indicated that 79 percent of people in Taiwan have used food delivery platforms. He pointed out that a merger would impact tens of millions of customers, more than half of all catering services, and 150,000 workers. Another KMT Legislator, Hsieh Yi-fong (謝依鳳), expressed her concern that such a merger could put low-priced “copper coin” eateries out of business. DPP Legislator Chen Ting-fei (陳亭妃) said she worried that a merger would make the company too “monstrous” and difficult to supervise, affecting the rights and interests of all users.
The FTC has previously banned large-scale domestic mergers and acquisitions, including the proposed merger between KTV companies Cashbox Partyworld and Holiday in 2019. Li assured the Legislature that any merger with the potential to significantly change the market structure undergoes strict and careful evaluation by the Commission.