The second war of the’Delivery App War’ is expected to begin in earnest as the review of the merger between the People of Delivery and Yogiyo, which has been drawn by the regulatory authorities for nearly a year, concludes with’conditional approval’.
This is because the offensive of online-based conglomerates loved by the public such as Kakao, Naver, and Coupang, including Yogiyo, which will find growth momentum in search of new owners, and the nation of delivery that goes beyond the domestic and Asian markets with German capital is expected. .
Until now, the delivery app market has been an area where startups or small companies fight, but now it has become a big game for domestic and foreign companies with higher weight classes to compete for’without care’.
Delivery Hero accepts the FTC’Sell Yogiyo’ condition
On the 28th, the Fair Trade Commission concluded conditionally approving the examination of the merger between the people and Yogiyo. However, if the two companies are merged into one, the market share of the domestic delivery app increases, which increases competition restrictions, so we have imposed a condition to sell Yogiyo to a third party within 6 months (up to 1 year when applying for extension).
Delivery Hero (hereinafter referred to as DH), who decided to take over the people of Delivery, was initially in a position that he could never accept the Fair Trade Commission’s judgment, but eventually decided to accept it. It is interpreted that it is because the picture of targeting the Asian market with the nation of delivery, which is the No. 1 service provider, was more advantageous than continuing to grow Yogiyo, the second largest business operator in Korea.
In addition, if the FTC’s decision was not accepted and the M&A plan was withdrawn, the majority of the nation’s stockholders of delivery such as Hillhouse, Altos Ventures, and Goldman Sachs, who decided to sell their shares, might not have been noticed.
Growing domestic delivery app market…”Nothing to notice”
Although there were many twists and turns, the domestic delivery app market is now expected to have an infinite competition system as DH’s plan to take over the people of delivery is rapidly rising. In the meantime, it is true that the sharp perspective of large companies leaning over the market that startups have worked hard to build when large companies soak their feet has been invisible. Kakao and Naver were also conscious of this gaze and held their breath in the delivery app business or slowed the expansion.
As if they were conscious of Kakao’s order-to-order service in 2015, the People of Delivery announced a zero fee for’direct payment’, and by the time Coupang launched’Coupang Itz’ last year, a giant business operator entered the delivery app market and said that they were conducting unfair business. He voiced criticism, but now the situation is different. The domestic delivery app market is expected to exceed 15 trillion won this year.
Accordingly, in keeping with fair rules, aggressive sales without any restrictions, large-scale marketing, and attempts to increase market share through differentiated services are expected to occur simultaneously. Naver was also a shareholder who owned 4.7% of Bae’s people’s shares, but as the relationship no longer exists, it is easier to move independently. As Kakao is also in the non-face-to-face era, as the delivery app market has grown rapidly, there is a high possibility that Kakao Talk-based ordering services will be more energized.
Coupang has also established some ground in the delivery app market over the past year, so it is expected to accelerate the expansion of the delivery app business based on strong and loyal customers.
Yogiyo, who will be the new owner… promising financial investors
One of the still powerful forces in the Delivery App War II is Yogiyo. Specifically, it is the’new owner’ who will buy this company.
From the delivery hero’s point of view, there is no choice but to find a new owner of Yogiyo, who would not pose a major threat to the people of delivery. In this case,’good-looking’ companies such as Naver and Kakao are expected to be excluded from the candidate list. Financial investors, such as private equity funds, who have the capital to hold Yogiyo, which is close to 2 trillion won, are likely to become Yogiyo’s new owners.
Eventually, it is expected that the new owner, who is aiming to raise the value of the company and receive more money and sell it on the market, or to make more money through the listing of stocks, will pursue a strategy to increase market share and profitability by holding a yogi. Even if it’s not up to the top, the picture seems to be dominant, with a solid second-place strategy, using business and marketing expenses appropriately, and completely outstripping subgroups.
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Delivery app market passing by’the eye of the storm’… solidifying the first and second place vs. the rise of a third player
In summary, the domestic delivery app market has become a market that doesn’t seem to be considered young or noticed. The No. 1 operator, Bae Yi Min, has the enormous capital and overseas network power of a German company, and Yogiyo, the second-largest operator, has also become a small company with a corporate value of over 2 trillion won. As a result, it has become a market that does not need to be noticed even when traditional distribution companies enter, and large companies such as Kakao and Naver expand their business.
The domestic delivery app market, which has just ended the first war, is now standing in the’eye of the storm’ and preparing for the second war, which will begin in earnest from next year.