Uber acquires Baemin's parent, opening doors for new, integrated services
Analysts say that Uber's $14.8 billion acquisition of Delivery Hero could potentially lead to Baemin's integration with Uber's taxi service and closer cooperation between Uber and Naver.
A sticker on a restaurant in Seoul on Jan. 22, 2025, indicates the establishment's availability on the food delivery platform Baedal Minjok, commonly known as Baemin.
NEWS1
Korea’s largest food delivery platform, Baedal Minjok, commonly known as Baemin, will become part of Uber’s global business after the U.S. company acquired Baemin’s German parent, Delivery Hero.
Uber said on Thursday that it signed a business combination agreement with Delivery Hero and will launch a tender offer for the German company’s shares at 41.50 euros ($47.60) apiece. The deal, which values Delivery Hero at about $14.8 billion, is expected to close in the second half of next year, subject to regulatory approvals.
Once completed, Uber will operate mobility and delivery services across 99 markets worldwide and will gain control of Delivery Hero’s operations in 50 markets, including Baemin in Korea, Talabat in the Middle East and foodpanda in Southeast Asia.
To address antitrust concerns, Uber will divest Delivery Hero’s businesses in 14 markets, including Norway and Sweden, where its food delivery platform Uber Eats already operates. Those assets will be sold to the investment firm SSW Partners.
“Korea is one of Uber’s core markets, and ensuring Baemin’s business continuity and growth is our top priority,” an Uber Korea representative said. “Our commitment to investing in the Korean market remains unchanged.”
“Food delivery and ride-hailing share much of the same operating infrastructure,” said Kim Do-hyun, the dean of the business administration department at Kookmin University’s graduate school. “Uber could seek to generate synergies by integrating its taxi business in Korea with Baemin.”
The acquisition is expected to intensify competition with Coupang Eats. Baemin remained the market leader in estimated credit and debit card spending during the first half of the year at 5.73 trillion won ($3.9 billion), according to Mobile Index. Coupang Eats narrowed the gap with an estimated spending of nearly 4.27 trillion won.
An industry source said that Delivery Hero’s financial constraints have led to criticism that Baemin has lost some of its innovative edge.
“Uber could provide a new growth engine for the platform,” the source said.
Analysts also see the potential for closer cooperation between Uber and Naver as they compete with Coupang. Naver had considered participating in the sale process for Baemin before Uber reached an agreement with Delivery Hero. The two companies have also partnered since last year, when Naver Plus Membership was linked with Uber’s taxi service.
Oh Dong-hwan, an analyst at Samsung Securities, said that Naver’s push into hyperlocal services could make food delivery an attractive area for collaboration.
“Naver is expanding its hyperlocal business, including offline payment terminals,” Oh said. “Food delivery is the one major segment still missing, making cooperation with Uber highly likely.”
The transaction remains subject to approval from Germany’s Federal Financial Supervisory Authority, or BaFin, for the tender offer, and merger reviews by competition regulators, including the Korea Fair Trade Commission. Industry observers expect limited regulatory obstacles in Korea, as Uber exited the country’s food delivery business in 2019.
BY PARK TAE-IN, OH HYEON-WOO [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
