Grab Expands into Taiwan with $600 Million Foodpanda Acquisition
Southeast Asia’s leading super app, Grab, is set to expand its reach into Taiwan with the acquisition of Delivery Hero’s foodpanda delivery business for $600 million in cash. This marks Grab’s first venture outside of Southeast Asia, signaling a significant step in the company’s growth strategy. The deal, announced on March 23, 2026, is expected to close in the second half of the year, subject to regulatory approvals and customary closing conditions [Grab Announcement].
Strategic Expansion for Grab
The acquisition will allow Grab to operate in 21 Taiwanese cities, leveraging its expertise in managing complex delivery logistics in dense urban environments. According to Anthony Tan, Group CEO and Co-Founder of Grab, Taiwan’s high demand for mobile-first services and its population of approximately 23 million produce it a natural extension of Grab’s existing markets [CNA]. Grab anticipates the transaction will contribute at least $60 million in incremental Adjusted EBITDA in 2028 [Grab Announcement].
Delivery Hero’s Strategic Shift
For Delivery Hero, the sale of its Taiwan operations is part of a broader strategic review aimed at streamlining its global footprint. Niklas Ostberg, CEO and co-founder of Delivery Hero, stated the divestment is a “key first step” in this process [Delivery Hero Announcement]. The proceeds from the sale will be used to pay down debt [Business Times].
Foodpanda Taiwan’s Performance
Foodpanda’s Taiwan business has demonstrated strong performance, generating a Gross Merchandise Value (GMV) of EUR 1.5 billion and positive adjusted EBITDA (before the allocation of group costs) in the full year 2025 [Delivery Hero Announcement]. The transition of customers, vendors, and delivery partners to Grab is expected to occur following the closing of the acquisition.
Financial Implications for Grab
Grab reiterates its 2026 Adjusted EBITDA guidance of $700 million to $720 million, with the Taiwan acquisition factored into its projections [Grab Announcement]. The company plans to complete the migration of users, merchants, and drivers to its app by early 2027 [Business Times].