Grab's Foodpanda Acquisition Sparks Controversy! Delivery Workers' Unions Warn of Market Monopoly and National Security Risks, Urge Government to Reject Deal

In response to Grab's proposed acquisition of Foodpanda, the Taiwan Delivery Industry Rights Advancement Alliance, the National Delivery Industry Union, and the Taichung City Delivery Platform Service Industry Union issued a joint statement today (20th) expressing strong opposition. They are calling on Taiwan's Fair Trade Commission and relevant regulatory authorities to outright reject the merger, rather than approve it with conditions. The unions argue that if the acquisition proceeds, it could disrupt competition in the delivery market, further squeeze delivery workers' order opportunities and bargaining power, and potentially harm consumer rights. They urge regulators to carefully assess market competition and public interest.

The statement highlights the equity and board-level connections between Grab and Uber. The unions argue that even if senior executives resign from board positions, the operational and financial ties between the two companies cannot be eliminated. They fear that post-acquisition, the market could enter a state of "nominal competition but actual monopoly." The unions also point to past collaborations between Grab and Uber, citing overseas market cases to suggest that a de facto cooperative relationship already exists. If the acquisition proceeds, they warn, market concentration in Taiwan's delivery sector will intensify, undermining long-term industry development.

Nearly 90% of delivery workers oppose the deal and reject conditional approval

Su Po-hao, spokesperson for the Taiwan Delivery Industry Rights Advancement Alliance, stated that a recent survey conducted via Facebook and LINE community groups showed that nearly 90% of participating delivery workers oppose the acquisition. He emphasized that frontline workers are deeply concerned that reduced market competition will negatively impact their earnings and working conditions. However, the statement did not provide further details on the survey's sampling methodology or sample size.

On information security, the unions raised concerns about Grab's business collaborations and R&D partnerships with certain Chinese enterprises. They worry that if Grab gains control over vast amounts of Taiwanese consumer data, spending patterns, and geolocation information, it could heighten information security and national security risks. Therefore, they urge regulators to include data security in their review process.

The unions stress that once market monopolization and data concentration occur, they cannot be fully remedied through subsequent regulation. As such, they believe there is no room for conditional approval in this case. They call on the Fair Trade Commission and relevant ministries to exercise strict oversight to protect fair market competition, delivery worker rights, and public interest.