Delivery Hero has signed an agreement to sell its Foodpanda operations in Taiwan to Southeast Asian ‌ride-hailing and delivery company Grab for $600m in cash.

In a statement, Delivery Hero said that the deal forms the first step in an ongoing strategic review.

The company plans to use the net proceeds from the deal to repay debt and for general corporate purposes, including strengthening its capital structure.

The transaction is expected to close in the second half of this year, subject to regulatory approvals.

Following completion, Foodpanda’s local customers, vendors and delivery partners in Taiwan are expected to transition to Grab. Delivery Hero said it remains “fully committed” to operating as usual in the market until closing.

Delivery Hero co-founder and CEO Niklas Östberg said: “The Foodpanda team in Taiwan has built a fantastic business, and we thank them for their hard work.

"A transaction like this is a significant undertaking, but we are delighted to have agreed this cash deal, which reflects the strength and attractiveness of the business in Taiwan."

Meanwhile, the transaction will give Singapore-based Grab a delivery foothold outside Southeast Asia.

Grab co-founder and Group CEO Anthony Tan said: “This acquisition will mark Grab’s expansion into Taiwan, our ninth market and first outside of Southeast Asia.

“This is a natural next step for Grab, as our experience in Southeast Asia is a direct fit for this market. We see a significant opportunity to grow the food and groceries delivery scene here.”

In full-year 2025, Delivery Hero’s Taiwan food delivery operations generated gross merchandise value (GMV) of €1.5bn ($1.75bn) and delivered positive adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation].