Reports have emerged that Uber and Naver are considering acquiring Baedal Minjok. Citing a report by the Seoul Economic Daily, Reuters reported that Uber and Naver have formed a consortium to acquire Woowa Brothers, the operator of Baedal Minjok. According to the report, the acquisition target is the 1,001 TP3T stake in Woowa Brothers held by Germany's Delivery Hero, with an offer amounting to up to 8 trillion won. The consortium's share structure was mentioned as 801 TP3T for Uber and 201 TP3T for Naver.
However, the deal has not been finalized yet. Following related reports, Naver issued a statement saying, "We are reviewing various options, but nothing has been decided." In a Reuters report as well, Naver explained that while it is true they received a teaser letter regarding the sale to Delivery Hero, no final decision has been made.
The background of these acquisition rumors lies in Delivery Hero's portfolio restructuring. In 2019, Delivery Hero pursued the acquisition of Woowa Brothers for approximately $4 billion and received approval from the Fair Trade Commission in 2020. At the time, the Commission approved the acquisition on the condition that Yogiyo be sold. Since then, Delivery Hero has operated Baemin in the Korean market, but it has recently been reported that the company is considering the possibility of selling Woowa Brothers.
For Uber, the expansion of the delivery market is linked to the restructuring of its Asian business. Uber already operates the global food delivery service, Uber Eats. By securing Baemin, it can gain access to the number one platform in the Korean delivery market. For Naver, it can integrate its search, map, reservation, payment, and commerce data with food delivery. In particular, the combination of Naver Plus membership, Naver Pay, and local search with Baemin could enhance the competitiveness of its lifestyle platform.
However, it remains uncertain whether this will actually lead to an acquisition. The delivery platform industry is a complex one involving issues regarding commissions, riders, self-employed business owners, and the burden on consumers. The Korea Economic Daily analyzed that domestic conglomerates may feel burdened by the acquisition due to the high valuation, issues concerning small business owners and riders, and Uber's potential increase in its stake in Delivery Hero. It is also suggested that Uber could expand its indirect influence through Delivery Hero.
If the acquisition materializes, the competitive landscape of the Korean delivery app market could change significantly. Baemin is the core platform of the domestic delivery market, with Coupang Eats and Yogiyo following closely behind. If Uber and Naver also enter the fray, delivery is highly likely to shift beyond simple ordering apps into a competition for lifestyle platforms that integrate maps, search, payment, membership, and advertising.
