🧠 Food for thought

Implications, context, and why it matters.

Delivery Hero may sell Baemin as debt pressure builds

• Baemin, short for Baedal Minjok, is owned by Germany’s Delivery Hero, an online food delivery company. Delivery Hero is weighing a sale during a portfolio review 1.
• Baemin is not a weak business. It is one of three profitable platforms in Delivery Hero’s global portfolio and posted a record operating profit in 2024 2, 3.
• The push to sell appears tied to cash needs. Delivery Hero faces debt maturities starting in 2027, with much of the strain linked to convertible bonds, a type of debt that can turn into shares 4.
• Since buying Baemin in 2019 and taking full ownership in 2021, Delivery Hero has pulled about US$700 million from the company through dividends and share sales 4.

Uber and Naver aim at Coupang with Baemin

• For Uber, the deal would mark another try in South Korea’s food delivery market after it shut down Uber Eats there in 2019 5.
• The 80-20 split with Naver is meant to cut Fair Trade Commission merger risk. The buyer group would keep Naver at 19.9%, below the 20% reporting line for large business groups under Korea’s Fair Trade Act 5.
• The partnership is aimed at Coupang, South Korea’s leading ecommerce company. Its Rocket Delivery service puts pressure on Naver’s plan to build an Amazon-like platform 5.
• A deal would sharpen the fight in last-mile logistics, the final step of getting goods to customers. That would put Uber Eats, through Baemin, against Coupang Eats 5.