Taiwan’s Ministry of Labor Opposes Uber Eats-Foodpanda Merger

Taiwan’s Ministry of Labor has officially expressed its opposition to the proposed acquisition of food delivery service foodpanda by Uber Eats, according to officials who announced the move on Wednesday. The ministry has communicated its stance to the Fair Trade Commission (FTC), signaling concerns over the potential impact on workers’ rights.

The proposed merger, announced in May by Uber Technologies, Inc., the parent company of Uber Eats, has raised red flags within the labor sector. Minister of Labor Ho Pei-shan, addressing the issue during a legislative session, emphasized that the ministry does not support the deal at this time. According to Focus Taiwan, Ho responded to lawmakers’ inquiries by reaffirming the ministry’s opposition, citing unresolved labor issues as a major factor.

The Ministry of Labor’s position hinges on the demands of the National Delivery Industrial Union, which is calling for better pay and improved working conditions for delivery drivers. Wang Hou-wei, head of the ministry’s Department of Employment Relations, told Focus Taiwan that the ministry will maintain its stance until these concerns are addressed and both the platforms and the union reach an agreement.

Regulatory approval for the merger rests with the Fair Trade Commission, which has yet to begin its review process. According to Focus Taiwan, the FTC explained that the review has been delayed as both Uber Eats and foodpanda have yet to submit all necessary documentation. The commission confirmed that it will consult all relevant government agencies once the documents are in order.

The potential merger is drawing significant attention, not only due to its economic implications but also because of its potential effects on the rapidly growing gig economy. The Ministry of Labor’s opposition adds to the scrutiny of the deal, particularly with respect to safeguarding the rights of delivery platform workers in Taiwan.

Source: Focus Taiwan