Grab’s Snagging Foodpanda For US$600 Million

Picture this: the wild, cash-burning days of food delivery in Asia are over. It’s all about smart moves and steady profits now.

Recently, Grab announced a US$600 million all-cash acquisition of Delivery Hero’s foodpanda Taiwan operations, marking Grab’s first major expansion beyond Southeast Asia into a ninth market.

This deal helps Delivery Hero fix its debt mess while handing Grab a ready-made winner in an already money-making market in Taiwan.

Who's buying who?

Grab has evolved from a taxi-dispatch startup in 2012 into Southeast Asia’s leading superapp, operating across over 900 cities in eight countries and offering transport, deliveries and even financial services (GrabPay).

After years of losses, it achieved its first full-year net profit of US$268 million in 2025 on revenue of US$3.37 billion and Adjusted EBITDA of US$500 million. Sitting on $3.4 billion in cash, Grab didn’t need loans or stock sales to pay the US$600 million entirely in cash.

Delivery Hero, by contrast, is a Berlin giant spread to over 70 countries but piled up debt along the way. Even with strong 2025 numbers like over €900 million in EBITDA, its stock tanked 90% in five years as investors freaked over 2027 debt deadlines. Selling Taiwan’s cash cow lets them pay down loans and drop leverage from 2.7x to about 2.2x.

Why This Deal Now?

Delivery Hero is selling from a position of financial stress and activist pressure.

Hong Kong-based Aspex Management, which holds over 9% of the company, were fed up, demanding sales or a leadership shakeup. Foodpanda's operations in Taiwan, pumping out $1.8 billion in sales value last year, was the easiest high-profit asset to offload fast.

Uber tried grabbing it in 2024 for US$950 million before Taiwan’s Fair Trade Commission (FTC) blocked the merger on antitrust grounds, leaving Uber to pay a US$250 million termination fee.

Grab now secures foodpanda Taiwan for US$600 million, a 36.8% discount to Uber’s failed bid, implying an enterprise value to GMV of roughly 0.33–0.34x versus Grab’s own 0.44x multiple.

With foodpanda Taiwan generating about US$1.8 billion in GMV in 2025 and positive Adjusted EBITDA, analysts estimate the deal at around 10x the incremental US$60 million EBITDA expected in 2028.​

Taiwan: A Delivery Dream Market

Why Taiwan?

It’s got 23 million people jammed into buzzing cities like Taipei, perfect for quick deliveries. High incomes mean folks pay up without endless discounts. The $3.6 billion food delivery scene is basically a two-horse race: foodpanda at 51-55% share, Uber Eats at the rest. Grab steps in as the new foodpanda boss across 21 cities.

Dodging Uber’s Regulatory Bullet

Uber’s flop cleared Grab’s path.

In 2024, Taiwan’s Fair Trade Commission blocked that merger after unions and workers warned of price gouging and rider pay cuts.

Grab’s different: zero local share now means they’re just replacing one 52% player in the duopoly without a risk of monopoly. Expect some rules like fee caps, but approval looks solid by late 2026

However, regulators are likely to impose behavioural remedies such as commission caps, fee transparency requirements and bans on restrictive merchant exclusivity.​

Fun twist: Uber owns about 13.5% of Grab, so they won’t torch cash in price wars. It’s a cozy rivalry focused on smart ops over subsidies.

What’s Next

Post-deal, Grab is rolling out GrabMaps for faster routes in those tight streets and AI tools to help restaurants predict demand.

Bigger win?

• Fintech

With digital banks thriving (revenue up 37% to $347 million), they’ll pitch loans to eateries, instant pay for riders, and insurance to millions of new users. Toss in their recent $425 million Stash buy for investing apps, and Taiwan becomes a goldmine.

Ripple Effects Across Asia

For Delivery Hero, the Taiwan sale eases near-term liquidity pressure but removes a stable, profitable stream of roughly €1.5 billion in GMV from its portfolio.

The company will lean more heavily on strongholds such as Korea’s Baemin and the Talabat business in MENA, where a recent US$2 billion IPO of a 20% stake implied a US$10 billion valuation. Activists are likely to continue pressing for further divestments or listings of regional assets as the company retools its strategy.​

In Southeast Asia, weaker foodpanda spots face tougher fights as Grab bulks up. This could spark more shakeouts like Thailand’s consolidating scene.

But needless to say, Grab’s now a pan-Asian powerhouse.