Grab's foodpanda acquisition enters critical review; CEO addresses concerns

Grab's proposed $600 million acquisition of foodpanda Taiwan has entered a crucial review phase with the Fair Trade Commission (FTC), which has extended its deliberation period until October 27. The outcome of this significant deal, which would see the Southeast Asian ride-hailing and delivery giant take over Delivery Hero's Taiwanese operations, is expected by the end of October.

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Uber's voting power in Grab is less than 4%, exerting no influence or control over Grab's operations, and that Uber's CEO has exited Grab's board.

Amidst the intensified scrutiny, Grab Group CEO and co-founder Chen Pi-yao personally addressed public concerns. He specifically tackled the issue of Uber's shareholding in Grab, which has raised questions about market competition. Chen clarified that his personal voting rights in Grab are dominant, ensuring independent strategic decisions by the Singapore-based operational team. He stressed that Uber's voting power in Grab is less than 4%, exerting no influence or control over Grab's operations, and that Uber's CEO has exited Grab's board.

Chen argued that Grab's entry into Taiwan would introduce a competitor with global scale, technology, and operational experience, potentially stimulating healthy competition. He noted that 18 industry guilds have expressed support for Grab's entry, anticipating a new competitive force in the market. Grab aims to create an efficient market that balances the interests of merchants, delivery partners, and consumers, ensuring sustainable income for riders and fair prices for customers.

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This point has no room for compromise. Grab will comply with relevant Taiwanese regulations, including data governance and cybersecurity requirements, and will do its utmost to protect Taiwanese users.

Data security is a non-negotiable priority for Grab. Chen assured that the company will strictly adhere to Taiwanese regulations regarding data governance and cybersecurity. All Taiwanese user data will be stored on dedicated AWS infrastructure within Taiwan, with a secondary backup in Singapore. He explicitly stated that no Taiwanese data would be stored in China, Hong Kong, or Macau. Furthermore, Grab will establish a dedicated technology governance committee in Taiwan to ensure compliance and will use its own mapping technology from day one. Concerns about potential data access by Huawei were dismissed, with Chen stating that Grab's cooperation with Huawei is limited to eight Southeast Asian markets, does not involve user data, and excludes Taiwan.

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The claims are untrue. In addition to the cybersecurity commitments just mentioned, it is impossible for Huawei to obtain any map data from Taiwan, whether contractually, through existing partnerships, or technically.