Guo Rongjin, associate professor and director of the Institute of Financial Law, Southern Taiwan University of Science and Technology. (Photo by reporter Tian Yuhua)
It is now a critical time for the Fair Commission to review Grab’s application to acquire foodpanda. Today (29th), Liberty Times held a forum on "New Opportunities and Resilience in the Food Delivery Industry" to discuss changes in Taiwan's food delivery industry. Guo Rongjin, associate professor and director of the Institute of Finance and Law at Southern Taiwan University of Science and Technology, said that the core of thinking about corporate mergers and acquisitions and market changes should be whether "effective competition" can be maintained. In particular, digital market competition will promote better services and innovation, and will also benefit delivery workers and consumers. New blood should be viewed from a positive perspective.
Liberty Times held a forum on "New Opportunities and Resilience of the Food Delivery Industry" today, inviting experts from industry, government, and academics to discuss "Competition, Innovation, and the Next Step of Taiwan's Digital Economy." In recent years, Uber Eats and Grab have applied to acquire foodpanda Taiwan, which has always attracted market attention because it involves the rights and interests of countless restaurants, delivery people and consumers. The fair meeting will announce the review results on October 27 at the latest.
Guo Rongjin is familiar with the Fair Trade Act and relevant regulations on digital market supervision in various countries. He pointed out that the key to the continued progress of the digital economy, including e-commerce and food delivery, is whether the market can maintain a state of substantial competition. Because operators will continue to offer better services in order to win over consumers, Taiwan's food delivery market should try its best to ensure that the two major platforms maintain effective competition, which is most conducive to consumer welfare.
However, although the digital economy can easily form monopolies, digital platforms also have bilateral or multilateral market characteristics, and effective competition can allow different participants to profit and create value. Therefore, Rong-Jin Kuo believes that the evaluation of mergers and acquisitions should also focus on whether the transaction can maintain effective competition in Taiwan's food delivery market, ensuring that there is substantive competition and mutual checks and balances in the market, and whether the platform can create value and maintain competitive order.
Guo Rongjin also explained that merger review needs to consider medium- and long-term market changes. The Grab acquisition of foodpanda Taiwan is different from the Uber Eats merger application in 2024. Uber Eats' acquisition of foodpanda is a direct merger of two existing players. It is easier for existing players to absorb the already existing consumer market. However, Grab is a new entrant to Taiwan. What should be evaluated is whether Grab can retain players with substantial competitiveness after taking over, and whether Grab can innovate business in the Taiwan market.
In addition, Guo Rongjin also bluntly said that in 2024, foodpanda’s parent company Delivery Hero has been adjusting its global business and planning due to financial problems. If foodpanda Taiwan is closed, it will still be Uber in the end. The dominance of Eats alone is a medium- and long-term risk that Taiwan's food delivery market will face. Therefore, if new entrants are willing to enter the market and maintain competition, it can be viewed positively from the perspective of competition law. It can also be said that all parties in the market create positive value. The government should return to the nature of competition and review whether the transaction can promote and create effective competition.
