While pandas are famous for their appetite, it’s Uber Eats’ pending absorption of foodpanda that has many in Taiwan up in arms awaiting the Fair Trade Commission’s ruling on whether to allow what would essentially be a monopoly on the Taiwanese food delivery market.
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Uber Eats' pending acquisition of foodpanda remains a hot topic in Taiwan, as many await the decision of the Fair Trade Commission (FTC) later this month.
Delivery workers are conflicted about the merger. Many came out in protest just last Wednesday, with most quoting worries that it will be harder for them to earn money. If the merger goes through, Uber Eats will control between 80 - 90% of the market share, making them, effectively, the last word on what profit delivery drivers would see.
Their fears are well-founded, as many have seen margins of NT$120 per order in 2016 already whittled down to just NT$30 - $40 today.
National Delivery Industrial Union Chair Chen Yu-an (陳昱安) listed a series of concerns if the company is allowed to obtain this monopoly, saying salaries and merchant commission fees were both likely to see negative impacts. While consumers may be able to avoid some of the changes by paying membership fees, a monopolistic hold on Taiwan would allow the platform to charge whatever other additional fees they felt warranted.
Uber Eats announced its intention to acquire foodpanda on May 14, for which the paperwork was just completed November 8. Since then, the merger has been under legal review by the FTC, who will announce a decision on the December 19 as to whether or not to allow the motion. However, that could be delayed until March 21 of next year.
So far the FTC has promised that they are looking at the case weighing the overall economic interests against the lack of competition. For their part, Uber Eats has also issued a statement promising that the transaction will deliver a win-win for all involved, including the rights of workers, among the interests of the many involved parties.
Amanda Stephens, for Rti News