The Impulso Podcast E85: Delivery Hero losing grip?
10 snips
Jul 31, 2024 The podcast delves into Delivery Hero’s tumultuous journey post-Baemin acquisition. It highlights Baemin's market share loss to rivals like Coupang Eats and the fallout from a CEO resignation. Listeners gain insights into the competitive landscape across Southeast Asia, with discussions on pricing issues and consumer dissatisfaction. Leadership challenges in various markets are also explored, revealing the complexities of global expansion. The conversation wraps up with a look at strategies to revive brand dynamics in a cutthroat food delivery industry.
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Competitive Shift in Korean Market
- Delivery Hero's acquisition of Baemin made them dominant in Korea, but Coupang Eats is aggressively challenging them.
- The competitive landscape in Korea's food delivery market is shifting rapidly, signaling potential market share changes.
CEO Exit Amid Customer Dissent
- Baemin raised delivery fees, upsetting customers, and its CEO Lee Gyuk-hwan recently retired under unclear circumstances.
- Customer dissatisfaction over price hikes contributed to shifts towards competitors like Coupang Eats.
Baemin's Profitability and Expansion
- Baemin's Korean business was profitable with 156 million euros EBITDA in 2020 despite losses in new markets like Vietnam.
- Delivery Hero acquired a strong East Asian platform with Baemin, but expansion into Vietnam was a financial drag.