Grab buys Foodpanda Taiwan in first push beyond Southeast Asia
$600 million acquisition gives the Singapore-based company a major delivery foothold in Taiwan, with closing expected in the second half of 2026.
- Grab is acquiring Delivery Hero's Foodpanda business in Taiwan for $600 million in cash.
- The acquisition marks Grab's first major expansion outside of its core Southeast Asia market.
- The deal is expected to close in the second half of 2026 and is projected to add at least $60 million in adjusted core earnings for Grab by 2028.
- For the seller, Delivery Hero, the sale is part of a strategic review to help repay debt.
Grab, Southeast Asia’s largest ride-hailing and delivery company, said on Monday (March 23) that it had agreed to acquire Delivery Hero’s Foodpanda business in Taiwan for $600 million in cash, marking its first expansion outside the region.
The Singapore-based group said the acquisition would give it a strong delivery presence beyond Southeast Asia as it pursues a wider growth plan centred on artificial intelligence, new services and carefully chosen overseas acquisitions.
Anthony Tan, Grab’s group chief executive and co-founder, said the move was a logical progression for the company, adding that Grab’s experience in Southeast Asia matched well with the Taiwanese market.
The deal still requires regulatory clearance and the fulfilment of other closing conditions.
Grab said it expected the transaction to be completed in the second half of 2026 and projected that it would add at least $60 million in adjusted core earnings (EBITDA) in 2028.
According to Grab, Foodpanda’s Taiwan operations generated around $1.8 billion in gross merchandise value in 2025 and were profitable on an adjusted EBITDA basis before Delivery Hero group cost allocations.
In February, Reuters reported that Grab was aiming for annual revenue growth of more than 20% over the next three years and planned to lift EBITDA threefold to $1.5 billion by 2028.
At that time, president and chief operating officer Alex Hungate said the company had already established small positions outside Southeast Asia, including through its acquisition of US wealth platform Stash.
Grab also reaffirmed its adjusted EBITDA forecast for 2026 at $700 million to $720 million.
It said the Taiwan transaction would add to its projected group revenue for 2026, which it expects to reach between $4.04 billion and $4.10 billion.
The company added that it was targeting early 2027 to complete the transfer of users, merchants and drivers onto the Grab platform.
On the seller’s side, Delivery Hero chief executive Niklas Oestberg described the Taiwan sale as an important first move in the strategic review of the group’s operations.
In a separate statement, the company said the proceeds from the deal would be used to repay debt.
Shares in the German company rose almost 11% by 1311 GMT and were on course for their strongest trading day of the year if the advance was sustained.
Investors, led in particular by Aspex Management, have been urging Delivery Hero to show progress in its strategic review.
The company’s shares have fallen by nearly one-third so far this year.
Aspex said selling assets was an encouraging start, but argued that the Taiwan divestment alone was insufficient.
It said Delivery Hero was still facing regulatory fines and was continuing to mishandle capital through inefficient financing arrangements, adding that management would need to do much more to restore confidence in the capital markets.
Reuters
