Labor unions urge FTC to reject Grab acquisition of foodpanda Taiwan

Taipei, July 20 (CNA) Labor unions representing Taiwan's food delivery workers urged the Fair Trade Commission (FTC) on Monday to reject Grab Holdings' proposed acquisition of foodpanda's Taiwan operations, arguing the deal would create a de facto monopoly.

In a joint statement, the National Delivery Industrial Union, the Taiwan Delivery E-Commerce and Articulated Transportation Alliance and the Taichung Delivery Industrial Union said the FTC should reject the deal outright, leaving no room for conditional approval.

The FTC formally accepted the merger application of the Singapore-based ride-hailing and delivery giant in mid-June after months of supplementary filings, and a decision is expected by the end of July if the review is not extended.

Uber Eats is foodpanda's main competitor in Taiwan, and the unions argued that the acquisition would put a single operator in control of the local delivery market because Uber Technologies Inc. is Grab's largest shareholder.

In addition, the unions contended, Uber CEO Dara Khosrowshahi has long served on Grab's board, and though he recently stepped down, the move was merely a technical maneuver to sidestep regulatory scrutiny.

They also pointed to past non-compete agreements between Grab and Uber and to overseas markets where the two firms' apps have been integrated to direct customer traffic, calling this evidence of an existing business relationship.

Approving the acquisition, the statement said, would leave Taiwan with "two companies in name, but one in reality."

Citing an online survey by the National Delivery Industrial Union, the unions said nearly 90 percent of delivery workers opposed the acquisition, reflecting fears that reduced competition would further erode couriers' bargaining power and livelihoods.

The statement also raised national security concerns.

It alleged that Grab's ties to Chinese companies, including Huawei's Petal Maps and Alibaba Cloud, and to AI research centers in Beijing and Shenzhen, could put Taiwanese consumers' personal data, spending records and addresses at risk of being leaked to a hostile state.

Separately, the opposition Taiwan People's Party (TPP) caucus also urged the FTC to closely scrutinize the acquisition, warning that greater market concentration could hurt both consumers and delivery workers.

The calls came one day before the Delivery Workers' Rights Protection and Delivery Platform Management Act takes effect, introducing new protections for delivery workers and regulations for platform operators.