Korean food delivery giant Baemin announced it would leave the Vietnamese market from December 8, two months after saying it would "downsize operations".
Confirming with VnExpress , a representative of Baemin Vietnam - a food delivery app - said that it will "officially stop operating in the Vietnamese market from December 8". The company also sent a notice about this to customers today.
"Baemin's decision to leave Vietnam is driven by the difficult economic situation globally, as well as the fierce competition in the local market," the company said in a statement.
Delivery Hero, the parent company of Baemin Vietnam, said its strategy at the moment is to focus on markets that are leading and have the potential to lead. In Vietnam, the application's top priority in the coming weeks is to support and fulfill its obligations and responsibilities to all employees, driver partners and restaurant partners.
Earlier, at the end of September, the Korean food delivery giant announced its downsizing. In an email to Baemin Vietnam employees at that time, Ms. Cao Thi Ngoc Loan, interim CEO of Baemin Vietnam, said the downsizing was due to the challenging food delivery market in Vietnam.
Baemin is operated by Woowa Brothers Vietnam, a member of the joint venture between Woowa Brothers - the leading food delivery company in Korea and Delivery Hero - a food delivery technology group in more than 50 countries. In addition to the core food delivery sector, Baemin also provides a number of other services such as grocery shopping, online grocery stores, and cosmetics sales.
This brand started appearing in Vietnam in mid-2019 after completing the acquisition of a Vietnamese food delivery app. The Korean giant entered the market at the right time when the food delivery market was bustling. A series of domestic and foreign names entered the market, "burning money" in the race to gain market share by launching "huge" promotions.
In August, Delivery Hero co-founder and CEO Niklas Östberg told Reuters that the company's outlook in Asia was positive, except for Vietnam, a market where it said the business would "never be profitable."
While big competitors like Grab and ShopeeFood often have big promotions to attract customers, this policy is not a priority for Baemin. As a result, it is losing steam in the race for market share. According to statistics from Momentum Works , in 2022, Baemin only held 12% of the food delivery market share in Vietnam, while Grab held 45% and ShopeeFood held 41%.
Minh Son
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