Uber Axes Foodpanda Takeover Deal In Taiwan: Here's What Benzinga's Edge Rankings Show

Uber Technologies Inc. UBER announced that it will terminate its deal to acquire Delivery Hero’s Foodpanda in Taiwan after facing regulatory challenges. Here’s what Benzinga’s proprietary edge rankings show about the stock.

What Happened: Uber signed the $950 million deal to take over the German company’s Foodpanda business in Taiwan last May. However, it ended the deal, reported Reuters, resulting in the payment of $250 million termination fee.

This follows a block imposed by Taiwan’s Fair Trade Commission in December 2024, citing a 90% rise in its market share when combined with its own business, Uber Eats.

According to Delivery Hero, a separate agreement that was signed with Uber to buy $300 million worth of its newly issued shares will not be affected after the falling out of the said deal.

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Why It Matters: Shares of Uber declined 3.3% on Tuesday and rose by 0.20% in after-hours. The exchange-traded fund tracking the S&P 500 index, SPDR S&P 500 ETF Trust SPY dropped 0.83% on the same day.

Uber has risen 11.84% on a year-to-date basis, whereas it was 9.79% over one year.

On a technical basis, Uber’s stock was flashing a bearish warning. The stock, which closed at $70.65 apiece on Tuesday, was below its short and long-term averages. Its relative strength index of 42.09 was in a neutral zone, while the MACD indicator was positive at 0.49, implying the possibility of a short term up move.

Benzinga‘s proprietary Edge Rankings also confirmed a weaker long term price trend as the stock has declined in the high single digits over the last 12 months. Its momentum ranking of 48.12 percentile, indicating a neutral positioning for the stock.

Meanwhile, its value ranking depicting the stock’s relative worth stood at 45.15 percentile. The growth ranking of 9.47 indicated a weaker historical earnings and revenue expansion.

Uber’s consensus price target was $90.58 based on the 35 analysts tracked by Benzinga. The price targets ranged from a low of $77 to a high of $115. The three latest ratings from KGI Securities, Truist Securities, and Piper Sandler averaged at $85.67, implying a 21.02% upside.

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