Grab to expand into Taiwan via foodpanda acquisition

Grab Holdings is set to enter Taiwan for the first time through the acquisition of Delivery Hero’s foodpanda delivery business in the market, marking a major milestone in its regional expansion strategy.

The deal, valued at US$600 million on a cash-free and debt-free basis, will see Grab establish a presence in its ninth market and its first outside Southeast Asia. The transaction remains subject to regulatory approvals and is expected to close in the second half of 2026.

Speaking on the move, Anthony Tan said, “This acquisition will mark Grab’s expansion into Taiwan, our ninth market and first outside of Southeast Asia. This is a natural next step for Grab, as our experience in Southeast Asia is a direct fit for this market.”

He added that Taiwan’s dense, high-traffic cities and mobile-first population closely mirror the environments Grab has long operated in, positioning the company well for growth. “We see a significant opportunity to grow the food and groceries delivery scene here,” Tan said.

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The acquisition brings together Grab’s AI-powered ecosystem with foodpanda Taiwan’s strong operational footprint, which spans 21 cities and generated approximately US$1.8 billion in gross merchandise value in 2025, the group shared in a statement. The business is also profitable on an adjusted EBITDA basis, prior to group cost allocations.

From a strategic standpoint, the move signals Grab’s ambition to export its Southeast Asian playbook into new markets, while leveraging technology such as GrabMaps and AI-driven personalisation tools to enhance delivery efficiency and consumer experience.

Tan also emphasised the importance of cultural alignment in the expansion. “Sharing a deep Asian heritage, we value the same traditions that define Taiwan’s rich food culture. For us, success starts with the community. We will be on the ground to listen first-hand to user needs,” he said.

On the other side of the deal, Delivery Hero's CEO and co-founder Niklas Östberg described the transaction as a key step in the company’s broader strategic review. “The foodpanda team in Taiwan has built a fantastic business and we thank them for their hard work. We are delighted to have agreed this cash deal, which reflects the strength and attractiveness of the business in Taiwan,” he said. “This divestment is a key first step in our ongoing strategic review.”

Delivery Hero added that proceeds from the sale will be used to strengthen its capital structure, including debt repayment and general corporate purposes.

Looking ahead, Grab plans to introduce its full suite of AI-enabled tools to Taiwan, aimed at improving experiences across consumers, merchants and delivery-partners. These include personalised recommendations, real-time analytics for businesses, and enhanced earnings tools for riders.

The company also intends to complete the migration of foodpanda Taiwan’s users, merchants and delivery-partners onto the Grab platform by early 2027, with transitional support services in place post-acquisition to ensure continuity.

Financially, the deal is expected to contribute at least US$60 million in incremental adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 2028, while supporting Grab’s broader growth trajectory. The company has reiterated its 2026 adjusted EBITDA guidance of US$700 million to US$720 million.

This deal also comes on the back of Uber's failed acquisition of Delivery Hero's foodpanda business in Taiwan early last year, following regulatory hurdles. The takeover was called off after Taiwan blocked the deal on anti-competitive concerns in December 2024. According to Reuters, Taiwan's Fair Trade Commission argued that the buyout of Uber's main rival, foodpanda, would increase their combined market share to 90% on the island, incentivising Uber to raise prices. Delivery Hero had first announced the proposed US$950 million acquisition by Uber Eats back in May 2024. 

Back in 2023, Delivery Hero had confirmed with MARKETING-INTERACTIVE that it was discussing the potential sale of its Asia business in September, and it would be reducing its team size in the APAC region. Later in 2024, Östberg told CNBC that if the business breaks even and ceases to drag on Delivery Hero’s profitability, he would happily considered holding on to foodpanda forever.

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