Baemin Now Competes with Grab and Gojek

Establishment of Joint Venture WuaDH Asia through DH and Corporate Merger Approval
Explosive Growth Potential in Asian Market

[Asia Economy Reporter Kim Cheol-hyun] Baemin, a domestic delivery app, has gained momentum for its expansion into the Asian market. The long-stalled corporate merger with Delivery Hero (DH) was approved after a year, and DH has agreed to the condition of selling Yogiyo, accelerating Baemin's push into Asia. Baemin, which has already entered the Vietnamese market and is recently intensifying its efforts in Japan, is expected to compete with Southeast Asian market leaders such as Gojek and Grab, based on businesses established by DH's investments across various Asian countries.

On the 29th, Germany's DH announced that the Fair Trade Commission conditionally approved the acquisition of Woowa Brothers, and as part of this, a joint venture called 'Woowa DH Asia' will be established in Singapore. This joint venture, co-invested by Woowa Brothers and DH, will operate DH's brand 'Foodpanda' in Bangladesh, Cambodia, Hong Kong, Japan, Laos, Malaysia, Myanmar, Pakistan, the Philippines, Singapore, Taiwan, and Thailand. The businesses of Woowa Brothers in Korea, Vietnam, and Japan will also be overseen by Woowa DH Asia. Kim Bong-jin, Chairman of Woowa Brothers, will serve as Chairman of the Board and CEO, while Jacob Angele, CEO of Foodpanda Asia, and Oh Se-yoon, currently CFO of Woowa Brothers, will be appointed co-CEOs, managing Foodpanda and Woowa Brothers business units respectively, outlining the organizational structure.

◆ Competition with Grab and Gojek = Woowa DH Asia plans to create synergy by leveraging the technological expertise and operational know-how of Woowa Brothers and DH in areas such as in-house delivery, shared kitchens, and quick commerce (immediate delivery of daily necessities) including Asia's D-Mart. DH CEO Niklas ?stberg stated, "The addition of Woowa Brothers employees, including CEO Kim Bong-jin, brings us tremendous experience and will be an opportunity to expand and strengthen our presence across Asia."

The competitors include global companies such as Grab, Uber Eats, and Gojek. Particularly, Grab and Gojek have grown based in Southeast Asia, expanding from mobility services like ride-sharing to delivery, solidifying their market positions. They have also developed localized technological capabilities by accumulating big data and analyzing it with artificial intelligence (AI) to provide services. Their provision of various lifestyle services such as mobile payments, parcel delivery, and car repairs is also an advantage.

◆ High Growth Potential in the Asian Market = Although there are existing strong players, DH and Woowa Brothers are entering the Asian market because they believe the growth potential is even higher. Baemin views the large population and very high economic growth rates in Asia as factors that could lead to significant expansion once new industries take root. The developed dining-out culture and motorcycle culture are also reasons why the delivery market is expected to grow explosively in the future.

Woowa Brothers intends to make every effort to pioneer the Asian market through this corporate merger and expand globally by leveraging Baemin's successful experience in Korea. Chairman Kim Bong-jin said, "The partnership with Delivery Hero will develop the entire ecosystem, and we will work together to innovate the delivery industry in Asia."

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