Taipei: Opposition to Grab Holdings' proposed acquisition of foodpanda's Taiwan operations grew Tuesday, as a lawmaker and delivery workers urged the Fair Trade Commission (FTC) to reject the deal, while regulators pledged a competition review and Grab defended the proposed transaction.
According to Focus Taiwan, ruling Democratic Progressive Party Legislator Wang Shih-chien made a public appeal at a press conference in Taipei, urging the FTC to deny the acquisition proposal. Wang argued that the deal would result in a "de facto monopoly" due to Uber's significant influence over Grab, its largest shareholder. Uber Eats and foodpanda are Taiwan's leading food delivery platforms, operated by U.S.-based Uber Technologies and Germany-based Delivery Hero, respectively.
Uber recently agreed to acquire Delivery Hero in a US$14.8 billion deal, while the sale of foodpanda's Taiwan operations to Grab for US$600 million is still pending FTC approval. The FTC accepted the merger application in mid-June and has a decision deadline set for late July, unless the review period is extended.
National Delivery Union Chair Arery Chen also voiced concerns at the press conference, referencing a study by the Institute for Information Industry that ranked Grab last among potential buyers of foodpanda Taiwan. Chen emphasized that the acquisition would reduce choices for delivery workers, consumers, and merchants, effectively placing both major platforms under Uber's influence.
Yeh Lo-yao, an associate professor at National Central University, highlighted potential data security issues due to Grab's technological ties with Huawei. Yeh argued that the U.S. has identified cybersecurity risks associated with Huawei, warranting closer examination of the proposed transaction.
In response to these concerns, Su Chi-yen of the Ministry of Economic Affairs' Department of Investment Review stated that Grab's investment application would undergo a thorough review, considering factors such as workers' rights and data protection. The review would involve multiple agencies, including the National Security Bureau, with input from the FTC.
Hu Tsu-shun of the FTC's Department of Service Industry Competition stated that the commission's key focus is on whether the acquisition would impede market competition. Uber's influence over Grab and its potential impact on the deal will be scrutinized.
Grab, in a statement, welcomed feedback from labor unions and committed to prioritizing the welfare and safety of delivery workers in Taiwan if the deal is approved. The company pledged to support income stability, reduce waiting times, and enhance safety through technology. However, Grab did not address monopoly or data security concerns raised by critics.