April 26, 2024

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[THE INVESTOR] Kim Bong-jin, CEO of Woowa Brothers, operator of the nation’s largest food delivery service Baedal Minjok, on Sept. 26 called the recent buyout of FoodFly by Germany’s Delivery Hero “the beginning of the second-round clash” among local food delivery service companies.

RGP Korea, the Korean arm of Berlin-based Delivery Hero that owns the top delivery apps Yogiyo and Baedaltong, announced last week it was acquiring the entire stake in FoodFly from Fast Track Asia, a local venture capital firm. The deal price was not revealed.

“This time, it is about the premium segment,” Kim told The Investor about the archrival’s business expansion. “The delivery market for luxury restaurants will soar here.”

Woowa Brothers CEO Kim Bong-jin

He predicted firms will make more efforts to attract popular luxury restaurants that have rarely allowed delivery of their dishes. Along with operating mobile reservation apps, both FoodFly and Baedal Minjok hire delivery staff to offer their own restaurant delivery services.

US ride-hailing giant Uber also launched its restaurant delivery app UberEats in Korea in August, teaming up with trendy restaurants in Gangnam and Itaewon, popular dining locations in Seoul.

According to industry data, Baedal Minjok makes up almost 50 percent of the nation’s burgeoning 15 trillion won (US$13 billion) food delivery market, while Yogiyo and Baedaltong have a share of 30 percent and 20 percent, respectively.

By Park Ga-young (gypark@heraldcorp.com)