Regulator examines conglomerate merger between ride-hailing and food delivery platforms

Commission to assess impact on competition and consumer choice

Uber Taxi (left) and Baemin Riders, the delivery arm of Baemin operator Woowa Brothers [Uber Taxi, Woowa Brothers]
Uber Taxi (left) and Baemin Riders, the delivery arm of Baemin operator Woowa Brothers [Uber Taxi, Woowa Brothers]

Korea's Fair Trade Commission has launched a merger review of Uber's planned acquisition of Baemin.

The Fair Trade Commission said Tuesday it had received and begun processing a preliminary review application for the proposed merger, in which US-based Uber Technologies seeks to acquire all shares of Germany's Delivery Hero.

The preliminary review system allows companies pursuing a merger to request a Fair Trade Commission assessment of whether the deal would substantially restrict competition before the formal merger notification period begins. Share acquisitions through a tender offer are, in principle, subject to post-closing notification.

Uber plans to acquire Delivery Hero shares through a tender offer. The company expects to complete the subscription process by November, then obtain regulatory approvals from competition authorities in relevant countries, with the share acquisition set to be finalized in the second half of 2027.

Delivery Hero controls Woowa Brothers, the operator of Baemin, through its subsidiary Woowa DH Asia. The deal would give Uber, which already operates a ride-hailing platform in South Korea through Uber Taxi, control over Baemin.

Ownership structure following the proposed merger between Uber and Baemin [Korea Fair Trade Commission]
Ownership structure following the proposed merger between Uber and Baemin [Korea Fair Trade Commission]

Based on monthly active users as of February, Kakao Mobility led the ride-hailing platform market with 13.58 million users, followed by Uber with 650,000. In the online food delivery market, Baemin ranked first as of April with 23.4 million users, ahead of Coupang Eats with 13.15 million and Yogiyo with 4.21 million.

The Fair Trade Commission views the merger as essentially a conglomerate combination between Uber's ride-hailing platform business and Delivery Hero's food delivery platform business. The commission said Uber's control of Baemin could lead to cross-platform integration across a range of services, including membership programs and expanded advertising and promotional offerings tied to both ride-hailing and delivery.

Uber has cited expanded cross-use between its mobility and delivery services, as well as broader advertising and promotional services for merchants, as the key anticipated benefits of the deal.

The Fair Trade Commission said it plans to comprehensively examine the merger's impact on the competitive landscape of the domestic ride-hailing and online food delivery markets, the business activities of rival operators, and the choices available to users and merchants.

"We plan to conduct a thorough review in accordance with the standards and procedures set out under the Fair Trade Act," the commission said.


y2k@heraldcorp.com