Baemin to conclude its operations in Vietnam
Baemin, a food delivery service under the wing of Delivery Hero, is concluding its operations in Vietnam after a four-year stint in the market. Speculation about Baemin’s exit emerged in September following a reduction in its operational scope and significant staff layoffs. In an official statement, Baemin expressed regret in conveying Delivery Hero’s decision to withdraw from Vietnam, effective December 8, 2023. The brand attributed this move to global economic challenges and intense competition within the market.
Initially established by startup Woowa Brothers, Baemin became part of Delivery Hero through a substantial $4 billion acquisition in 2019. Despite entering the Vietnamese market later than some competitors, Baemin managed to carve a niche and gained a notable user base. Yet, Vietnam’s fiercely competitive landscape, akin to other Southeast Asian markets, features numerous multinational players vying for customer attention. This intense rivalry seems to have played a significant role in Baemin’s decision to exit, underscoring the challenging dynamics of the food delivery industry in the region.
To optimize its functioning, the German food delivery giant Delivery Hero has downscaled its activities across the Asia Pacific area. Reports surfaced indicating Delivery Hero’s discussions with potential investors regarding the sale of segments of its Asian operations branded under Foodpanda. This potential sale involves territories in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand. Moreover, this move appears to be part of Delivery Hero’s strategic maneuvers to streamline its regional presence and potentially reallocate resources for greater efficiency and focus.
