Uber's acquisition of South Korea's leading delivery platform, Baedal Minjok, marks a significant turning point in the delivery ecosystem. While the merger is expected to create strong synergies, there are concerns that the heated marketing costs and potential increases in delivery commission fees could escalate into a capital war, exacerbating market polarization.
According to industry sources, Uber plans to maintain the 'Baedal Minjok' brand until the acquisition of its parent company, Germany's Delivery Hero (DH), is fully completed. This strategy aims to leverage Baedal Minjok's unique brand recognition and market share in South Korea.
On July 16, Uber announced a merger agreement with DH, agreeing to acquire the company for approximately 13 billion euros (about 22 trillion won). The deal is expected to be finalized by 2027, pending regulatory reviews from competition authorities in various countries. A Baedal Minjok representative stated, "At this point, it is difficult to disclose specific operational plans or integrated marketing strategies."
Industry analysts are closely watching the market changes resulting from Uber's acquisition of Baedal Minjok, given Uber's substantial capital and global operational experience. Notably, the second-largest player, Coupang Eats, is aggressively expanding its free delivery offerings linked to memberships and introducing significant discount coupons to increase its market share. A marketing war between the two giants is anticipated, which may further deepen the polarization of the domestic delivery platform market.
Lee Eun-hee, a professor of consumer studies at Inha University, noted, "While intense competition can benefit consumers in terms of price and quality, a solidified duopoly between 'Uber-Baedal Minjok' and 'Coupang Eats' could further marginalize platforms like Yogiyo and public delivery app Ddaenggyeo." She added, "Ultimately, the key will be the 'capital battle' over sustaining promotions. Even if free delivery is offered, how platforms manage the financial burden of rider payments will be crucial for future success."
Concerns are also emerging among small business owners regarding the potential for increased delivery commission fees. Currently, Uber's own delivery service, Uber Eats, charges commission fees of up to 30% in major markets like the United States. In contrast, Baedal Minjok's commission rates are capped at 7.8% due to cooperative agreements, highlighting a significant disparity. If the capital-rich global tech giant raises its commission structure to align with international standards under the guise of improving profitability, it could provoke backlash from small business owners and raise issues regarding rider treatment.
Experts believe this major deal could accelerate global competition in the domestic platform industry, but they emphasize that the Fair Trade Commission's assessment of monopoly concerns will be a key point of interest.
Kim Dae-jong, a professor at Sejong University, stated, "This merger should be viewed as a significant entry of global platform capital into the domestic ecosystem. The combination of Baedal Minjok's domestic market share and Uber's AI technology and logistics capabilities has the potential to enhance consumer benefits and drive logistics innovation. However, the Fair Trade Commission must conduct a thorough review to address concerns about market monopolization and the burden on small business commission fees."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.