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The merger and acquisition (M&A) of Korea’s # 1 delivery app ‘Delivery People’ and ‘Yogiyo’ # 2 delivery app received conditional approval from the Fair Trade Commission, and Germany’s Delivery Hero (DH) accepted it, paying attention to the impact on the delivery market. This is focusing.
The condition stipulated by the FTC is that DH should sell Delivery Hero Korea (DHK), a subsidiary that operates Yogiyo, to acquire elegant brothers (Baedal’s ethnic operator).
On the afternoon of the 28th, DH announced its acceptance of this condition, and DHK took an official position that “we respect the decision of the FTC.”
He withdrew from opposition to FTC policy last month.
Giving up Yogi-yo and taking over the town of Delivery, who have a monopoly on the dividend market, is interpreted as being of great benefit.
The delivery market share (based on last year’s transaction amount) was 78.0% for delivery people and 19.6% for Yogi Yoga (21.2% when boxes were included DHK and Food Fly delivery).
DH has to find Yogiyo’s new owner within six months, but if he takes over Yogiyo, he quickly rises to second place.
The foodservice industry estimates Yogiyo’s ransom to be around 2.4 trillion won, which is half of the delivery drivers’ 4.8 billion won.
Even considering the drop in the sale value, the key is to find candidates that can be acquired for KRW 1 trillion.
A foodservice industry official predicted: “Considering the Yogiyo bailout, private equity is tough and big corporations will only be able to take over.”
There is also an observation that there may be several companies that will be interested as the delivery market is growing rapidly due to the new coronavirus infection (Corona 19).
In the foodservice industry, large distribution companies, ‘IT Dinosaur’ Naver and Kakao, and Coupang, a late launcher of delivery apps, are being discussed as candidates for acquisition.
If these companies intervene before the acquisition, fierce competition could form in the delivery market.
Yet companies continue to draw a line and say they are not considering it.
At DHK, which has been put up for sale, there is an atmosphere of ‘Pretty well done’ with the reaction of shame.
It is also true that DHK has not been actively involved in marketing to expand the market so far, as the market share of the people from Delivery and Yogiyo is close to 100%, which generates monopoly controversy.
When DHK finds a new owner, competition in the delivery market is expected to increase even further after aggressive marketing.
Meanwhile, attention is also being paid to the impact of the FTC’s decision on restaurants and consumers.
The FTC also included in the approval conditions ▲ prohibition to change the actual commission rate for restaurants ▲ use of promotional amounts for consumers during the same month of the previous year ▲ prohibition of adverse changes in the working conditions of Yogiyo delivery workers .
The task is to prevent the tyranny of companies with monopoly status and supervise the management so as not to use files.
Currently, the delivery app fee paid by the restaurant owner is 88,000 won per month for the delivery person and 12.5% of the order amount for Yogiyo.
In a recent statement, the Korean Federation of Small and Medium Self-Employed Traders resisted the combination of the Bae Yi and Yogi-yo people and urged the Fair Trade Commission not to even consider conditional approval.
The group said: “According to the results of a survey on the Metropolitan Fair Economy Council delivery platform in August, delivery restaurants are affiliated with an average of 1.4 delivery applications, and 79.2% of merchants responded that the costs and advertising fees are excessively high. ” Concerned about the harm caused by the birth of
/ yunhap news
