FTC’s Baemin-DH combined review related’River’… Startup industry concerns
[아시아경제 김철현 기자] The start-up industry said that it was an unusual measure to disapprove of the final conclusion of the Fair Trade Commission (the Fair Trade Commission) that it is necessary to sell Yogiyo in order to combine delivery heroes (hereinafter referred to as DH) and elegant brothers. They expressed concern that it could be a judgment.
On the 28th, the Fair Trade Commission decided to impose measures to sell 100% of Delivery Hero Korea (DHK), while DH conditionally approves a business combination acquiring 88% of the shares of elegant brothers. To take over Baemin, he has to sell Yogiyo.
◆Isolation of domestic startups in the global investment market = In response, he pointed out that the startup industry could cancel the investment amounting to 5 trillion won, resulting in isolation of domestic startups in the global investment market. As Bae Min and DH’s business combination review has been delayed for more than a year, the global investment market has already received a negative signal that adds’Korea Discount’. will be.
According to the Korea Startup Forum, etc., exit (recovery of funds) is important for the virtuous cycle of the domestic startup ecosystem, and strategic cooperation with global companies is necessary for startups to grow beyond the domestic market. For this reason, the combination of Korea’s representative unicorn, Baemin and global company DH, was evaluated as a symbolic issue of global exit through the largest merger and acquisition (M&A) in Korea. An official from the startup industry said, “If M&A, which is considered an important milestone in the development of the domestic startup ecosystem, is destroyed, any global company will not be able to make a decision to invest in domestic startups.” The gaze narrows, and the chances of successful exit for Korean startups are inevitably reduced.” In addition, it is expected to have an adverse effect on domestic startup investment in the future by blocking exits such as venture capital (VC) that invested in Baemin.
◆The most dynamic market conditions overlooked = The industry is also concerned that the FTC has overlooked the fact that food delivery is a dynamic market with fierce competition with the global market.
According to Frost & Sullivan, a global consulting firm, the global food delivery market is expected to grow by an annual average of 14% by 2025 to $200 billion. Amazon, the world’s largest retailer, has made a large-scale investment in delivery food platform Deliveroo, and China’s largest online shopping platform Alibaba has also acquired China’s No. 1 food delivery platform, Omor. In the U.S., Dutch delivery app company Takeaway took over Grub Hub, the second-largest market share company, and Uberitz, the third-largest market share company, in July, acquired the fourth-largest company, Postmate. It is being reorganized faster than the market.
The market is growing rapidly this year, coupled with the spread of the new coronavirus infection (Corona 19) in Korea. Compared to a year ago when the M&A between the elegant brothers and DH was announced, the industry’s common perception is that the domestic delivery market is different. Open market operators, not delivery app companies, jumped into the market and emerged as strong competitors, and the possibility of entering adjacent markets such as Internet portals and large retailers has already been proven. An official from the Korea Startup Forum pointed out that “Domestic startups are competing fiercely in the global cross-border phase.”
Reporter Kim Cheol-hyun [email protected]