Delivery Hero Explores Baemin Sale Amid Restructuring

Berlin-based Delivery Hero is reportedly exploring the sale of Woowa Brothers, the company behind South Korea’s leading food delivery app, Baemin. This strategic divestment, seven years post-acquisition, could fetch approximately 4.6 billion euros ($5.4 billion), according to industry sources. JPMorgan has distributed teaser letters to potential strategic investors and private equity firms globally, with tech giants like Uber, Naver, Alibaba Group, and DoorDash emerging as potential bidders.

The targeted 4.6 billion euro ($5.4 billion) valuation for Woowa Brothers surpasses the $4 billion Delivery Hero paid in 2019 for an 88 percent stake. While the company has not directly confirmed the ongoing sale process, it acknowledged a broad strategic review of its global portfolio, capital allocation, and cost structure.

In a significant development, Uber is reportedly considering a joint bid with South Korean tech giant Naver, proposing a 70-30 split. This potential consortium builds on an existing partnership, where Naver’s membership program already provides users access to Uber’s premium services, signaling a synergistic alliance.

However, Hanwha Group, actively expanding its food and retail ventures through Hanwha Machinery & Services Holdings, reviewed the acquisition but ultimately withdrew. Sources indicate Hanwha deemed the asking price too high, opting out of the competitive bidding process.

This strategic divestment aligns with Delivery Hero’s broader efforts to strengthen its balance sheet. Following years of aggressive global expansion, the company reported approximately 6.1 billion euros in debt at the close of last year. This move follows another recent asset sale in March, where it offloaded Foodpanda Taiwan to Singapore’s Grab Holdings for $600 million.

Industry experts are questioning the steep valuation, given the food delivery platform sector faces slowing growth, increasing regulatory scrutiny, and fierce competition globally. Baemin, while historically a dominant player in South Korea’s dynamic food delivery market, is now experiencing significant pressure from formidable local rivals, particularly Coupang Eats.

“The intensifying competition within the delivery platform market and the downward trend in earnings present a challenging calculation for potential buyers,” commented an industry official. “The ultimate success of this deal will likely hinge on a reduction in the current asking price.”

Despite these market headwinds, Woowa Brothers (Baemin) achieved a significant milestone in 2025, exceeding 5 trillion won ($3.3 billion) in annual revenue for the first time. Sales surged by 22 percent to 5.28 trillion won. However, operating profit saw a 7 percent decline to 592.9 billion won, marking a third consecutive year of decrease from 699.8 billion won in 2023.

Even amid declining profits, significant capital continued to flow out of Woowa Brothers. In 2023, Delivery Hero received 412.7 billion won in dividends. Furthermore, in 2024 and 2025, approximately 1 trillion won combined was allocated to repurchase treasury shares held by the German parent company.