Grab expands beyond Southeast Asia with $600 million Taiwan deal

Yesterday 15:45

By: Dakir Madiha

Grab expands beyond Southeast Asia with $600 million Taiwan deal

Grab Holdings has agreed to acquire foodpanda’s delivery business in Taiwan for $600 million in cash, marking the Singapore-based company’s first expansion outside Southeast Asia.

The deal will extend Grab’s footprint to a ninth market, adding operations in 21 Taiwanese cities and access to a business that generated about $1.8 billion in gross merchandise value in 2025. The Taiwan unit is already profitable on an adjusted EBITDA basis before group cost allocations by Delivery Hero.

Chief executive Anthony Tan said the move aligns with Grab’s operational strengths in dense urban markets. The company plans to deploy its AI-driven technology suite in Taiwan, including its proprietary mapping system and tools for merchants and delivery partners. These systems currently support more than 50 million monthly transacting users across over 900 cities in Southeast Asia.

The acquisition is expected to close in the second half of 2026, pending regulatory approval. Grab aims to migrate users, merchants and delivery partners from foodpanda’s platform to its own application by early 2027.

Financially, Grab said the deal will support its 2026 revenue outlook of $4.04 billion to $4.10 billion while maintaining its adjusted EBITDA forecast of $700 million to $720 million. The company expects the Taiwan business to contribute at least $60 million in additional EBITDA by 2028.

For Delivery Hero, the sale represents a key outcome of a strategic review launched in late 2025 under shareholder pressure. The company said proceeds from the transaction will be used to reduce debt, while describing the Taiwan unit as a strong and attractive asset.

The move reflects Grab’s broader push beyond its core markets. Recent acquisitions and partnerships, including investments in artificial intelligence and financial services, signal a strategy aimed at accelerating revenue growth and expanding its global presence.