Ride-hailing company Uber Technologies (UBER) has ended its pursuit to acquire Delivery Hero’s (DE:DHER) Foodpanda business due to regulatory setbacks. The deal, originally announced in May 2024, faced regulatory hurdles due to its anti-competitive nature. Through this acquisition, Uber intended to expand its Uber Eats delivery arm by leveraging Foodpanda’s strong presence in Taiwan.
Uber Terminates Foodpanda Deal
Uber’s decision to terminate the Foodpanda deal comes nearly three months after Taiwan’s antitrust regulator blocked the deal on competitive concerns. In particular, Taiwan’s Fair Trade Commission (FTC) contended that if Uber acquires Foodpanda then their combined market share in Taiwan would jump to 90%, giving Uber the power to misuse its dominance by increasing prices.
Under the agreement signed in May 2024, Uber needs to pay a termination fee of about $250 million. Moreover, according to Reuters, the termination of the deal would not impact a separate share purchase agreement with Delivery Hero, under which Uber agreed to buy $300 million worth of newly issued shares of the German food delivery company.
While Uber’s attempt to acquire Foodpanda has failed, the company continues to enhance its Uber Eats platform through other deals, including the recently announced partnership with online fresh food grocer FreshDirect in New York City.
Is Uber a Good Stock to Buy?
Despite the recently issued soft guidance, Wall Street remains bullish on Uber Technologies stock. The Strong Buy consensus rating on UBER stock is based on 32 Buys and four Holds. The average UBER stock price target of $90.77 implies 28.5% upside potential. Uber Technologies stock has risen 17% so far this year.
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