Grab’s Taiwan deal in context

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In focus

• Making sense of Grab’s costly bet in Taiwan
• Does ​​Sora’s closure pave the way for OpenAI’s IPO?

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Hello reader,

Given that Uber was willing to pay nearly US$950 million for Foodpanda Taiwan, the US$600 million deal Grab landed seems like a steal. But the amount also makes sense for Foodpanda’s parent firm, Delivery Hero.

While discounted on paper, the US$600 million price tag already comes on top of the US$250 million termination fee Foodpanda received when Uber’s bid to acquire the business was blocked, Kiren Tanna, co-founder and former exec of the food delivery major, told me for this edition’s featured story.

And given that an Uber-Foodpanda deal had been set up to make a dominant monopoly in Taiwan, it was naturally going to fetch a higher price, he added.

But on Grab’s side, the price it paid not only gets it Taiwan’s largest food delivery app by market share but also opens the regional tech giant to roll out more of its services in the country. Tanna added that ride-hailing is an obvious next step for the company, as he finds Taiwan a strong market for on-demand rides.

What do you think of this defining acquisition? Let us know at editors@techinasia.com.

Another company under pressure to prove its worth is OpenAI. As the ChatGPT maker eyes a potential IPO, its decision to sunset Sora suggests a willingness to take drastic steps to strengthen its case for public markets.

Miguel Cordon, journalist

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Top Story

Grab’s $600m Taiwan bet: strategy or stretch?

The company’s Taiwan bid also comes just months after its announced deals in the US, including its acquisition of Stash Financial and investments in autonomous driving tech firm May Mobility and remote driving company Vay.

With Grab shareholders voting in favor of a resolution that gives CEO Anthony Tan as much as 74.9% of voting power, more deals are expected to come.

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Our AI outbound efforts came with a cost

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Spotlight

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Southeast Asia’s leaders are gathering in Jakarta