The Impulso Podcast E62: What is the “right price” of Foodpanda for Grab?
Feb 28, 2024
They unpack why Grab walked away from buying Foodpanda and whether a reported €1 billion price made sense. They revisit the history of sale talks and the leaked valuation. They compare Grab’s cash uses like buybacks and debt repayment to acquisition logic. They explore delivery economics in Southeast Asia and what lies ahead for Foodpanda if it stays with Delivery Hero.
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Grab Explicitly Passed On Foodpanda
- Grab publicly confirmed it would not pursue acquiring Foodpanda during its Q4 earnings call.
- Management set a high hurdle for inorganic deals, signalling selective M&A discipline.
Grab Chose Buybacks Over Buying Competitors
- Grab authorised about $500M share buybacks and planned to repay roughly $500M of loans, spending nearly $1B in cash.
- That cash plan made a ~€1B Foodpanda price tag look less attractive relative to alternative uses.
Overlap And Integration Reduce Acquisition Value
- The true cost of acquiring Foodpanda goes beyond headline price and includes regulatory and integration risk.
- With overlapping users and merchants, the marginal operational value to Grab may have been limited.