Delivery App No. 2 'Yogiyo' Up for Sale...But Retail Industry Shows "No Interest"

[Asia Economy Reporter Seungjin Lee] Yogiyo, the second-largest domestic delivery app operator, has been put up for sale, but major domestic distribution companies have shown lukewarm reactions. This is because the business nature of Yogiyo, which focuses on food delivery, differs from that of the distribution industry, which centers on dawn delivery, making synergy creation difficult.

According to the distribution industry on the 29th, major distribution companies such as Lotte, Shinsegae, and Hyundai Department Store have no plans to consider acquiring Yogiyo, which is up for sale. Some have expressed a stance to observe the situation, but the possibility of acquisition is very low.

The distribution industry's skepticism about acquiring Yogiyo stems from the difficulty in creating synergy. Currently, the core businesses of major distribution conglomerates are expanding e-commerce through dawn delivery and linking offline stores with online channels.

However, what hampers these businesses are difficulties in securing logistics center sites and various regulations that reduce the utilization of offline stores. Since the challenge is not simply a lack of delivery capability causing business expansion difficulties, it is analyzed that acquiring Yogiyo will not generate significant synergy effects.

An industry insider said, "The current direction of large distribution companies and delivery-focused Yogiyo differ considerably in nature, so expecting great synergy seems difficult. While there may be some interest, they are likely to approach cautiously."

In the case of Lotte Group, Lotte GRS operates the delivery app Lotte Eats, and convenience store Seven Eleven has signed a business agreement with Yogiyo and launched services, so it is mentioned as a potential acquisition candidate. However, since Lotte Accelerator has already invested in delivery startups, the possibility of acquiring Yogiyo is very low.

Also, Lotte Shopping is focusing on optimizing the linkage between online and offline centered on offline stores. Hyundai Department Store also plans to concentrate on existing delivery and delivery platform investments.

Another distribution industry insider said, "Each company is already operating or investing in delivery platforms, so acquisition does not seem easy. Also, even if acquired, various regulations and concerns about infringing on small local businesses arise, which could rather increase risks."

This content was produced with the assistance of AI translation services.