The Fair Trade Commission (FTC) announced its decision to bar Uber Eats’ proposed acquisition of Foodpanda this Wednesday, citing serious competition concerns.
Uber Eats announced on May 14 that it would acquire the rival delivery service Foodpanda, pending approval from the FTC. In October, the Labor Ministry notified the FTC of its opposition to the proposal. Uber Eats officially applied in November, after which the FTC began reviewing it.
Hundreds of delivery personnel protested the merger in early December, quoting worries that it would be harder for them to earn money were the merger to be approved as Uber Eats would acquire 80-90% of the market share, essentially giving the company complete control to determine delivery driver rates. Some delivery personnel have stated that their margins of NT$120 (US$3.67) per order in 2016 have already whittled down to just NT$30 (US$0.92) or NT$40 (US$1.22) in 2024.
After extending the review once on December 9, the FTC came forward with its final decision this Wednesday and announced that it would bar the proposal, citing competition concerns. Uber Eats said it would be willing to address concerns with binding commitments, but the FTC maintained the decision.