Grab to buy Delivery Hero’s Foodpanda Taiwan business for $770 million
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The deal marks Grab's first foray into food delivery outside of its South-east Asia home market.
PHOTO: LIANHE ZAOBAO
Singapore - Singapore-based Grab said on March 23 it would pay US$600 million (S$770 million) in cash for Delivery Hero’s foodpanda delivery business in Taiwan.
The deal marks its first foray into food delivery outside of its South-east Asia home market.
Grab is in pursuit of a broader expansion strategy built around artificial intelligence, newer services and selective overseas deals.
“This is a natural next step for Grab, as our experience in South-east Asia is a direct fit for this market,” Mr Anthony Tan, Grab’s group chief executive officer and co-founder, said in a statement.
Grab said the deal, subject to regulatory approvals and other closing conditions, was expected to close in the second half of 2026, and was expected to contribute at least US$60 million in incremental adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) in 2028.
Foodpanda in Taiwan generated about US$1.8 billion in gross merchandise value in 2025 and was profitable on an adjusted EBITDA basis before Delivery Hero group cost allocations, it added.
In February, Reuters reported that Grab was targeting annual revenue growth of more than 20 per cent over the next three years and aimed to triple EBITDA to US$1.5 billion by 2028. At the time Mr Alex Hungate, its president and chief operating officer, said the company had taken “toeholds” outside South-east Asia, including its acquisition of US wealth platform Stash.
Grab reiterated its 2026 adjusted EBITDA guidance of US$700 million to US$720 million and said the transaction would be accretive to its 2026 group revenue forecast of US$4.04 billion to US$4.1 billion.
The company said it aimed to complete migration of users, merchants and drivers to the Grab app by early 2027.
Delivery Hero, which operates in more than 70 countries, has been trying to shed units in Asia over the past few years, including a sale of its Taiwan operations to Uber Technologies that was blocked on antitrust grounds. It also terminated a planned sale of its South-east Asia business.
Delivery Hero CEO Niklas Ostberg said the Taiwan divestment was “a key first step” in the group’s strategic review.
Shareholders, most notably Aspex Management, have pressed Delivery Hero for progress in the strategic review of activities, as its shares have lost nearly a third of their value in 2026. REUTERS, BLOOMBERG
