Miguel Cordon · · 2 min readDelivery Hero-owned Baemin to exit Vietnam in December
Photo credit: Baemin
Baemin, the South Korean food delivery platform owned by Delivery Hero, will officially exit Vietnam on December 8 after over four years of operation in the country.
“Our decision to exit Vietnam has been accelerated by the difficult global macroeconomic conditions that persist, as well as challenging long-term profit trends for our local entity,” Delivery Hero said in a statement to Tech in Asia.
The Germany-based company said it plans to prioritize markets where it already has a leading position, a move aligned with its growth strategy and efforts to boost profitability.
In September, Tech in Asia first reported that Baemin had to scale down its operations and lay off employees. At the time, interim CEO Loan Cao attributed the decision to the increasingly competitive food delivery environment in Vietnam, “characterized by high incentivisation.”
Despite being one of the major food delivery players in Vietnam, Baemin lags behind GrabFood and ShopeeFood in terms of market share, according to data from Momentum Works.
Meanwhile, Bloomberg reported that China-based Meituan is eyeing a potential buyout of Delivery Hero’s business in Southeast Asia, which would also include the Foodpanda brand.
If such a deal goes through, Meituan would compete directly with Grab, another potential acquirer of Foodpanda from Delivery Hero.
See also: Foodpanda deal would cement Grab’s market dominance – if regulators allow it
Editing by Thu Huong Le and Jaclyn Tiu
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