Grab Holdings Ltd has agreed to acquire Delivery Hero SE’s Foodpanda operations in Taiwan for US$600 million, marking its first expansion beyond its core Southeast Asian market.
The all-cash deal will enable Grab to extend its footprint across 21 cities in Taiwan, the Singapore-based ride-hailing and delivery firm said on Monday. The transaction is expected to close in the second half of the year, subject to regulatory approvals.
The acquisition gives Grab access to a market of around 23 million people, supporting its strategy to diversify beyond its highly competitive home region. The company has recently faced slowing growth as it shifts focus toward profitability.
Shares of Delivery Hero rose 1.4% in Frankfurt trading after earlier gaining as much as 4.4%, while Grab shares edged about 1% lower in pre-market trading in New York.
Delivery Hero’s management has been under increasing pressure from major shareholders to streamline operations amid broader industry consolidation. Investors, including Hong Kong-based hedge fund Aspex Management, have called for strategic divestments, arguing that partial sales or minority stake reductions may not be sufficient. The company’s shares have declined approximately 35% over the past year.
A previous attempt to sell the Taiwanese business to Uber Technologies Inc. collapsed after local antitrust regulators blocked the proposed $950 million deal, prompting Uber to withdraw.
For Grab, the acquisition represents a key growth opportunity as it seeks to expand its user base and revenue streams in a challenging economic environment. The company expects the Foodpanda Taiwan business to contribute at least $60 million in additional adjusted EBITDA by 2028.
Elsewhere, Grab has been exploring a potential acquisition of Indonesia’s GoTo Group to strengthen its position in Southeast Asia, although progress has been slowed by regulatory concerns and valuation differences. Negotiations have also been complicated by Telkomsel’s minority stake in GoTo.
Despite ongoing expansion efforts, Grab’s shares remain well below their 2021 listing price. The company has also been diversifying beyond ride-hailing and food delivery, investing in areas such as digital financial services to support long-term growth.