With Germany's Delivery Hero (DH) moving to sell Baemin operator Woowa Brothers, a shake-up in Korea's delivery app market is looming. Baemin is the No. 1 food delivery app in Korea and a platform that holds delivery infrastructure and data on restaurants and consumers. If a new owner is chosen, the competitive axis in Korea's delivery market is likely to shift from simple food delivery to a "super app" race that bundles membership, payments, advertising, and quick commerce.
According to the investment banking (IB) industry on the 25th, DH recently selected JPMorgan as the lead manager for the sale and is proceeding with the sale of Woowa Brothers. The sale price is discussed at around 8 trillion won. Potential buyers mentioned include overseas platform companies such as Uber, DoorDash, and Alibaba; domestic strategic investors including Naver; and private equity funds.
Among them, Uber has emerged as a key variable in the bidding after becoming DH's largest shareholder. Uber recently increased its equity in DH to 19.5% and also secured an option to acquire an additional 5.6%. If Uber steps in as a direct buyer, it would be both a major shareholder of DH and the buyer acquiring DH's core assets. For this reason, some say a conflict of interest could erupt over the independence of Baemin's sale price and procedures.
Naver is also cited as a major candidate. On the rumors of acquiring Baemin, Naver said it is "reviewing various options to strengthen business competitiveness, but nothing has been decided specifically at this time." An industry official said, "If Naver participates in a consortium format, Baemin could be combined with Naver's search, maps, reservations, payments, and membership," adding, "A structure could be possible in which consumers search for restaurants on Naver, check locations and reviews on Naver Map, pay with Naver Pay, and receive delivery through Baemin."
From Naver's perspective, the ability to shore up its commerce competition with Coupang also matters. As Coupang ties shopping and delivery together with Rocket Delivery and the Wow membership, Naver increasingly needs to add instant-delivery capabilities to its search, payments, and membership. B Mart and delivery operations infrastructure held by Baemin are evaluated as assets that can reinforce Naver's relatively weak last mile (the final delivery segment from a logistics hub to the end consumer).
Global delivery platforms like Uber and DoorDash are corporations that have built experience in food delivery and last-mile logistics in overseas markets. If they acquire Baemin, they can immediately secure the user base and franchise network of the No. 1 player in Korea without going through the process of building a separate brand.
It is also notable that China-affiliated platforms such as Alibaba are mentioned as candidates. An industry official said, "Recently, 'C-commerce' platforms such as AliExpress and Temu are growing their presence in the domestic e-commerce market, but there are limits in fresh food and same-day or instant delivery," adding, "If they secure Baemin, it could become a springboard to expand influence in Korea's e-commerce and quick commerce markets." However, domestic sentiment toward Chinese capital, along with concerns over personal data and platform dominance, are burdensome factors.
◇ Sale price reaches 8 trillion won… fees may rise
The reason Baemin's sale has a significant impact on the domestic market is that Baemin is no longer just a simple food ordering app. Based on food delivery, Baemin also holds restaurant data, consumer order data, delivery infrastructure, advertising products, subscription services, and grocery shopping and quick commerce businesses. Depending on who the new owner is, it could expand into a comprehensive platform that ties together everyday consumption.
Competition with Coupang Eats is also expected to intensify. Coupang Eats has rapidly grown its presence in the delivery app market by leveraging the Coupang Wow membership. If Baemin secures investment capacity under a new owner, competition between the two is likely to become fiercer. An industry official said, "If the core of competition so far has been free delivery and discount coupons, going forward it could spread into an ecosystem battle that bundles membership benefits, payment points, ad exposure, grocery delivery, and even local commercial district data."
For consumers, free delivery, discount coupons, and point-earning benefits could increase in the short term. That is because a new owner may launch aggressive marketing to prevent user churn and check the chase from Coupang Eats. However, there are also concerns that in the long run the market could solidify around a few large platforms such as Baemin and Coupang Eats, reducing choices.
In particular, given the acquisition price discussed at around 8 trillion won, improving profitability will inevitably be a key task for the new owner. If the pressure to recoup investment grows after the acquisition, the structure of advertising products or the fee system for restaurant owners could be revamped.
Ultimately, depending on who becomes Baemin's new owner, Korea's delivery market is likely to shift to a battle for leadership in lifestyle platforms. An industry official said, "The sale of Baemin is expected to open the second round in the domestic delivery app market," adding, "If the first round was a competition around food delivery orders, the second round will be a fight over who grows the delivery app into a larger lifestyle platform."