Grab is Southeast Asia’s biggest ride-hailing platform, whose other core businesses include food, grocery and parcel deliveries and digital financial services.

“This acquisition will mark Grab’s expansion into Taiwan, our ninth market and first outside of Southeast Asia,” chief executive Anthony Tan said.

Tan said Grab’s experience in the bustling cities of Southeast Asia made Taiwan “a natural next step”.

“Our longstanding expertise in managing complex delivery logistics for dense and high-traffic cities is well-suited for Taiwan,” he said.

Grab, in the same statement said it would operate in 21 Taiwanese cities after the deal was expected to be sealed in the second half of the year.

“A transaction like this is a significant undertaking, but we are delighted to have agreed this cash deal, which reflects strength and attractiveness of the business in Taiwan,” said Niklas Ostberg, chief executive and co-founder of Delivery Hero.

“This divestment is a key first step in our ongoing strategic review.”

In December 2024, Taiwan’s Fair Trade Commission blocked Uber from acquiring Delivery Hero’s foodpanda business for US$950 million as the merged entity would create a more than 90 percent market share.

Uber Eats is currently a major food delivery player in Taiwan.