Delivery Hero (DH) decided to promote the sale of Yogiyo in order to cherish the people of delivery serviced by elegant brothers.
This is because the Fair Trade Commission placed a condition so that DH can acquire graceful brothers only by selling 100% of the shares of Delivery Hero Korea (DH Korea), a Korean branch. DH is expected to go directly to promote the sale of Yogiyo within the next six months.
On the 28th, DH announced that it would accept the order to sell Yogiyo from the Fair Trade Commission of Korea through a public announcement, and to promote the sale of DH Korea within six months.
On this day, the FTC issued a condition that DH, the headquarters of Yogiyo, in Germany must sell its stake in DH Korea in order to merge with its elegant brothers.
By allowing the two companies to combine, the synergy effect can be achieved through cooperation, and the sale of shares in DH Korea maintains a competitive relationship between the people of Bae Yi and Yogiyo, thereby enhancing consumer welfare.
The FTC has already sent DH an audit report regarding the combination of the two companies in November. The Fair Trade Commission said it would approve the merger of the two companies as a condition of selling Yogiyo.
At the time, the DH side drew a line that there would be no sale of Yogiyo, and said that it would persuade before the FTC plenary meeting. However, as DH announced that it would pursue the sale of Yogiyo, DH’s future moves are drawing attention.
DH has announced plans to take over elegant brothers and target not only the domestic market but also the Asian market. The reason why DH wants to take over the elegant brothers is that it not only can create synergy with Yogi-yo, but also because it has high management know-how of Chairman Kim Bong-jin, who achieved No. 1 delivery app in the fierce Korean market. As Chairman Kim Bong-jin takes on another challenge in the Asian market, competition with global delivery platforms such as Grab, Uberitz, and Go-Jek is expected to intensify.
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With the rapid growth of the delivery service market due to Corona 19, the entry of latecomers is also strong, and the people of delivery are expected to continue active marketing activities to solidify the No. 1 position apart from the Yogiyo sale issue. In addition to keeping the No. 1 position in the domestic market, DH’s full support is expected to challenge the Asian market.
DH said, “We expect to receive a final resolution (decision) in the first quarter of next year (that DH will take over the elegant brothers).”