Delivery Hero of Germany is considering the sale of Woowa Brothers, the operator of Baedal Minjok, marking a significant turning point in the domestic platform market. According to investment banking sources, JP Morgan, the advisor on the sale, has distributed teaser letters to major domestic and international companies, including Naver, Uber, Alibaba, and DoorDash, as well as some private equity firms. However, it is still too early to say that the acquisition process has officially begun or that any specific company has confirmed its intention to acquire.
Viewing this matter merely as a sale of a delivery app misses the essence of the situation. While Baedal Minjok is a food ordering service, it also accumulates data on local markets, consumer patterns, payment flows, and logistics routes. Delivery apps have evolved beyond just food ordering to become lifestyle data platforms. The identity of the new owner of Baemin could significantly impact the competitive landscape of the Korean platform market, the transaction conditions for small business owners and consumers, and the ecosystem of delivery workers.
Woowa Brothers was founded in 2011 by Kim Bong-jin, and Delivery Hero acquired an 88% stake in the company for €3.6 billion (approximately 4.8 trillion won) in 2019. It is reported that the joint venture established by Delivery Hero and Woowa Brothers in Singapore currently holds most of the shares. Delivery Hero is said to expect a valuation of around 8 trillion won, which is approximately 12 times the average operating profit over the past two years.
The issue at hand is the price. While Woowa Brothers' revenue has grown, its operating profit has been declining. Reports indicate that Woowa Brothers' operating profit was 699.8 billion won in 2023, projected to decrease to 640.8 billion won in 2024 and 592.8 billion won in 2025. Competition with Coupang Eats, rising marketing costs, and social pressure regarding delivery fees and commissions are straining profitability. The 8 trillion won price tag is viewed as both an attractive valuation for a platform asset and as “expensive.”
The context behind Delivery Hero's consideration of a sale is also crucial. The company is facing increased debt and financial burdens, necessitating liquidity. Reports indicate that Delivery Hero's debt stood at €6.166 billion (approximately 9.25 trillion won) at the end of last year, with a debt ratio of around 231%. Delivery Hero has already begun global asset restructuring, including the sale of its Taiwan-based Foodpanda to Grab. The review of Woowa Brothers' sale should be seen as part of this financial restructuring trend.
The mention of Uber is clear. Uber has expanded beyond ride-hailing into food delivery, logistics, and payment sectors, establishing itself as a global mobility platform. With experience in the delivery market through Uber Eats, acquiring Baemin or pursuing strategic cooperation could significantly enhance Uber's entry into the Korean delivery market. However, the Korean market is complicated by regulations and stakeholder interests, making it challenging for global companies to enter based solely on market share.
Naver's interest in Baemin is similarly significant. As the largest domestic platform with services in search, advertising, shopping, reservations, payments, and mapping, combining with Baemin could strengthen a lifestyle platform structure that connects search, ordering, payment, and local advertising. Particularly as Coupang Eats and Coupang's commerce ecosystem grow, Naver's need to secure offline consumer data has increased. However, if Naver pursues a direct acquisition, concerns about fair trade issues, platform monopolization, and potential backlash from small business owners could also rise.
The mentions of Alibaba and DoorDash highlight the international nature of this transaction. Alibaba has experience connecting commerce, logistics, and payment ecosystems, while DoorDash is a strong player in the U.S. food delivery market. However, the Korean market is already highly competitive between Baemin and Coupang Eats, with high consumer expectations. Foreign companies may find it difficult to succeed based solely on capital; they must also demonstrate operational capability, understanding of local markets, regulatory compliance, and social acceptance.
A critical aspect of this sale discussion is fair trade. When Delivery Hero acquired Woowa Brothers, the Korea Fair Trade Commission approved the deal on the condition that the sale of Yogiyo, another delivery app, was executed due to concerns about monopolization in the delivery app market. Reuters reported in 2020 that the approval of Delivery Hero's acquisition of Woowa Brothers was contingent upon the sale of Yogiyo. The identity of Baemin's new owner could again become a key variable in assessing competitive restrictions.
The delivery platform industry is one of the most complex sectors regarding stakeholder interests. Consumers desire low delivery fees and fast service, while small business owners seek lower commissions and reduced advertising costs. Delivery workers want stable income and safety. Platforms must secure both profitability and growth, but these four demands are often incompatible. Even with a new owner, if this structural tension is not resolved, the same conflicts are likely to recur.
Particularly concerning is the potential for private equity firms to acquire the company, as this could lead to increased pressure for fee hikes or cost-cutting measures to enhance profitability. Conversely, if a strategic investor from big tech acquires the company, the focus could shift from short-term profits to data and ecosystem expansion, but this could also raise concerns about platform monopolization. The key question is not who buys the company, but what operational principles they establish.
From a domestic industry perspective, the issue of 'platform sovereignty' also arises. Baemin is already under German capital control. While it is not surprising for it to fall into the hands of another global company, the deeper integration of food ordering and local market data into foreign platforms cannot be taken lightly. The nationality of data cannot be judged solely by the nationality of capital, but for platforms closely tied to citizens' lives, data management and fair market operation principles must be clearly defined.
However, excessive government intervention in market transactions is also undesirable. Mergers and acquisitions are fundamentally market matters. Nevertheless, companies like delivery platforms, which significantly impact citizens' lives, small businesses, and the labor market, differ from typical manufacturing sales. Fair trade reviews, data privacy, fee transparency, rider safety, and consumer protection standards must be meticulously examined.
It remains uncertain whether this transaction will materialize. The high price, complex interests, and significant regulatory risks contribute to this uncertainty. Some private equity firms reportedly feel burdened by acquiring consumer-facing companies. Following the Homeplus incident, there is heightened market caution regarding large-scale B2C acquisitions. Therefore, at this stage, it is essential to clearly distinguish between “initiating a sale” and “confirming an acquisition.”
Nonetheless, the importance of this matter lies in the fact that Baemin is not just an app. Baemin is the intersection where the daily lives of Korean consumers, the revenues of small business owners, and the livelihoods of platform workers converge. A change in the ownership structure of this company could shake the market order. The new owner of the delivery app will not only be purchasing a business but also assuming social responsibilities.
Whether it is Naver, Uber, Alibaba, DoorDash, or a private equity firm, the core question remains: Will Baemin be viewed as an asset to be resold at a higher price, or as an infrastructure responsible for sustainably operating a Korean lifestyle platform? If it is the former, conflicts will likely escalate; if it is the latter, a new order in the platform market could emerge.
The speculation surrounding Baemin's sale poses critical questions for the Korean platform industry: Who will reap the benefits of growth, who will bear the costs, and under whose control will the data lie? The competition among delivery apps is no longer just a battle over discount coupons; it is a war for platform dominance over lifestyle data, payments, logistics, and local markets.
Whether this transaction ultimately succeeds or fails, Korea cannot avoid addressing these issues. The choice lies between leaving the future of the platform industry solely to the market or establishing fair rules and social responsibilities. The search for Baemin's new owner signals not just a corporate sale but a harbinger of the next chapter in Korea's digital economy.
* This article has been translated by AI.
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