Foodpanda's Taiwan division will be purchased by Uber Technologies for $950 million in cash.

The companies announced that they expect the merger to be completed in the first half of 2025, pending regulatory approval. Delivery Hero will sell Uber $300 million in freshly issued common shares under a different deal.

Delivery Hero's CEO, Niklas Östberg, said the company needs to focus on specific areas in its global reach where they can make the most impact on riders, vendors, and customers. Uber's Senior Vice President of Delivery, Pierre-Dimitri Gore-Coty, announced that acquiring the company would help Uber grow in the competitive Taiwanese market. Currently, online food delivery services have a small market share there. 

Foodpanda is a major online grocery and food delivery service in Asia, operating in several countries including Singapore, Malaysia, Thailand, the Philippines, and Hong Kong. The business was bought by Germany's Delivery Hero in 2016. Foodpanda and Uber Eats control the majority of the Taiwanese meal delivery market. Foodpanda holds a 52% market share in Taiwan based on order volume, according to data from Measurable AI. Uber Eats dominated the remaining 48% of the market.

The transaction would be one of Taiwan's largest foreign acquisitions, except for those in the semiconductor chip sector. Delivery Hero announced in February that it had ended negotiations to sell its Foodpanda business in some Southeast Asian areas. Indicating long-term commitment, Östberg expressed contentment to CNBC about retaining its Foodpanda operations in Southeast Asia indefinitely.