The delivery powerhouse Grab announced on Monday its intention to acquire Delivery Hero’s Foodpanda operations in Taiwan for $600 million in cash, representing its initial growth beyond Southeast Asia. Grab mentioned that the transaction is subject to regulatory approval and is expected to finalize in the latter half of 2026. The firm plans to complete the transition of users, merchants, and driver-partners to its platform by early 2027.

This decision follows approximately a year after Uber Technologies withdrew its plan to acquire Foodpanda’s operations in Taiwan in March 2025, after the transaction was obstructed by Taiwan’s antitrust authority due to competition issues.

Previously, Uber Eats and Foodpanda were leading players in Taiwan’s food delivery sector. A recent study indicated that Foodpanda commanded a 52% market share, while Uber Eats represented 48% between 2022 and 2023. Taiwan’s Fair Trade Commission stated that the merged entity would have dominated approximately 90% of the market, raising alarms about decreased competition and possible price hikes.

However, this scenario may demonstrate a different situation. Should Grab secure Foodpanda’s Taiwan business, the Singapore-based ride-hailing and delivery company would achieve a market share of just over 50%, positioning itself as a more robust rival to Uber Eats instead of establishing a near-monopoly.

“This represents a natural progression for Grab, as our experience in Southeast Asia aligns perfectly with this market. Our extensive know-how in managing intricate delivery logistics for densely populated and high-traffic urban areas is ideally suited for Taiwan’s vibrant cities,” Anthony Tan, Group CEO and co-founder of Grab, stated in the announcement. “Taiwan’s populace of around 23 million also reflects a strong demand for mobile-first services, akin to the Southeast Asian consumers that Grab services daily. We perceive a considerable opportunity to expand the food and grocery delivery landscape here.”

Following the acquisition, Grab plans to extend its reach to 21 cities throughout Taiwan, fortifying its position in a crucial market. The agreement integrates Grab’s AI-enhanced platform and operational expertise with Foodpanda’s extensive local presence. Foodpanda’s operations in Taiwan produced about $1.8 billion in Gross Merchandise Value (GMV), as reported by the company.