Uber has significantly strengthened its position within the South Korean food delivery market, becoming the largest shareholder in Woowa Brothers’ parent company, the operator of the popular Baemin app, following a substantial additional stake acquisition.
Germany-based Delivery Hero announced on Monday that Uber’s additional acquisition elevated its holding from approximately 7 percent to 19.5 percent of issued capital, alongside securing options for an extra 5.6 percent stake.
In a formal statement, Delivery Hero welcomed Uber’s increased investment, viewing it as a strong endorsement of its diversified platform and ‘Everyday App’ strategy.
Headquartered in Berlin, Delivery Hero boasts extensive food delivery and commerce operations across 65 countries spanning Asia, Europe, and the Middle East. Notably, the company acquired an 87 percent stake in Woowa Brothers for approximately $4 billion in 2019, solidifying its presence in the Asian market.
Despite this strategic move, media reports, citing Delivery Hero’s regulatory filings, suggest Uber is not expected to expand its stake in Delivery Hero to 30 percent or more in the near future.
This significant additional investment from Uber coincides with local media reports on Tuesday indicating a potential plan for Uber to form a powerful consortium with South Korean internet giant Naver, aiming to take control of Baemin.
These reports detail a proposed consortium structure with an 80-20 ownership split between Uber and Naver. Furthermore, they suggest an offer of 8 trillion won has been made to acquire Delivery Hero’s entire controlling stake in Woowa Brothers.
Responding to the intensifying speculation, Naver clarified in a regulatory filing that “nothing has been specifically decided at this time” regarding such a deal.
However, the company also confirmed its ongoing efforts, stating it is “exploring various options to strengthen business competitiveness” in the evolving market.
sahn
