Taipei: The Fair Trade Commission (FTC) on Wednesday announced an extension of its review period for Grab's proposed acquisition of foodpanda's Taiwan operations, setting a new deadline of October 27. The extension comes as the FTC seeks to further evaluate the potential competitive impact of Uber's 13 percent stake in Grab.
According to Focus Taiwan, the review period has been prolonged by 60 working days under the Fair Trade Act. This decision shifts the deadline from the initial date of July 29 to October 27. The FTC has expressed concerns about whether Uber's stake and its 3.7 percent voting rights in Grab could influence the competitive dynamics between Uber Eats and Grab post-acquisition.
Further analysis is deemed necessary by the FTC to understand the acquisition's implications on Taiwan's competitive landscape. Uber Eats and foodpanda dominate Taiwan's food delivery market, operated respectively by U.S.-based Uber Technologies and Germany's Delivery Hero. Uber's recent agreement to acquire Delivery Hero, excluding foodpanda's Taiwan operations, for US$14.8 billion adds another layer to the complex situation. The Taiwan operations are part of a separate proposed US$600 million sale to Grab Holdings, a Singapore-based company yet to establish its services in Taiwan.
Grab submitted a comprehensive merger application on June 16, which initiated an initial review period that was set to end on July 29. The FTC's latest announcement follows a protest by delivery workers and supporters outside its office in Taipei. The protestors urged the commission to deny the acquisition, fearing it could result in a monopoly.
Arery Chen, chair of the National Delivery Union, emphasized that while they do not oppose Grab's entry into the Taiwanese market, it is crucial to clarify Uber's influence over Grab, considering Uber is the largest shareholder. Delivery worker Leo Hsu expressed concerns over the potential impact on workers if the two leading platforms fall under Uber's influence, warning of possible price and commission control due to reduced competition. Hsu, with nine years of experience as a delivery courier, highlighted the potential loss of bargaining power for couriers if the acquisition proceeds, leaving them with limited platform options.