Singapore-based Grab Holdings announced Sunday it will acquire Delivery Hero's foodpanda delivery business in Taiwan for $600 million, marking the platform giant's first expansion beyond Southeast Asia as regional consolidation accelerates.
The cash transaction, expected to close in the second half of 2026 pending regulatory approval, brings Grab into a 21-city Taiwan operation that generated approximately $1.8 billion in gross merchandise value in 2025 and already operates profitably on an adjusted EBITDA basis before group cost allocations.
"Taiwan represents a natural next step for Grab," Anthony Tan, Grab's Group CEO, said in a statement. The acquisition marks Grab's ninth market and positions the company to leverage its experience managing dense, high-traffic Asian cities.
The deal structure reflects the shifting economics of food delivery platforms across the region. Berlin-based Delivery Hero, which has been conducting a strategic review of its portfolio, will receive the full purchase price in cash on a debt-free basis. Niklas Östberg, Delivery Hero's CEO, called foodpanda Taiwan "a fantastic business" while describing the sale as "a significant undertaking" in the company's restructuring.
For Taiwan's delivery market, the transaction consolidates competition between regional and Chinese platforms. Grab competes primarily with Indonesia's GoTo Group and regional players, while Chinese platforms including Meituan operate separately. The foodpanda brand has established presence across Taiwan's major metropolitan areas, from Taipei to Kaohsiung.
Grab projects the acquisition will contribute at least $60 million in incremental adjusted EBITDA by 2028 and supports the company's three-year target of $1.5 billion in adjusted EBITDA. The company plans to integrate foodpanda's user base onto the Grab app by early 2027, deploying AI-enabled products including GrabMaps for delivery route optimization.
The transaction demonstrates how Southeast Asian platform companies are expanding into adjacent markets with similar urban density and consumer behavior patterns. Taiwan's 23 million residents, concentrated in major cities, mirror the demographics Grab has successfully served across Southeast Asia.
