Regulators in Taiwan have blocked Uber Technologies' plan to acquire Delivery Hero's Foodpanda local operations for $950 million, citing competition concerns. Uber stock was slightly lower in Thursday trading following the announcement late Wednesday.
Taiwan's Fair Trade Commission said that Uber's main food delivery competition in Taiwan comes from Foodpanda. The regulators fear that eliminating that dynamic could lead to higher prices for consumers and restaurants, according to a description of the decision published by the Wall Street Journal.
In a statement to the Wall Street Journal, Uber said it was disappointed by the decision and had worked to address regulators' concerns. The company added that it will continue to invest in Taiwan.
When Uber first announced the deal in May, Uber said it would represent one of "the largest ever international acquisitions in Taiwan, outside of the semiconductor industry." The deal would have seen Foodpanda's Taiwan consumers, merchants and other delivery partners transitioned to Uber Eats. Foodpanda is based in Singapore and operated by Berlin-based Delivery Hero.
On the stock market today, Uber stock is down a fraction to 61.46 in morning trades.
Uber Stock Treading Water In 2024
Based in San Francisco, Uber derives just under 60% of it revenue from North America. Europe, Middle East and Africa is Uber's second largest international market by total revenue, followed by its Asia Pacific region. Asia Pacific revenue of $3.7 billion for the first nine months of 2024 represented about 11.5% of Uber's total sales.
Uber stock was trading flat this year entering Thursday, after rallying nearly 150% in 2023. Uber's sluggish trading has mostly been driven by concerns about robotaxis from Waymo and, eventually, Tesla challenging Uber's dominance of the ride-hailing market.
While some analysts have named Uber a top pick for 2025, the stock has struggled to rebuild momentum. Its Relative Strength rating has degraded to an 18, compared to 85 out of a best-possible 99 just three months ago, according to MarketSurge.
Overall, Uber stock has an IBD Composite Rating of 67 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
