Baemin Vietnam, a food courier jointly invested by South Korea’s Woowa Brothers and Germany’s Delivery Hero, will stop operating in Vietnam from December 8, the firm announced on Friday.
Baemin Vietnam made the move after Delivery Hero decided to withdraw from the market due to global economic challenges and fierce competition in the country.
Baemin Vietnam has pledged to fulfill all obligations to its partners, including advertisements and promotions.
Baemin entered Vietnam in mid-2019 after acquiring local player Vietnammm. Baemin then expanded its services to proxy shopping, e-commerce, cosmetics sales, and others.
According to Singapore-based market research firm Momentum Works, Grab was the top food courier in Southeast Asia with a market share of 54% as of end-2022. In Vietnam, Grab also took the lead with a 45% market share. The second position belonged to ShopeeFood, the food courier arm under e-commerce giant Shopee with 41%, Baemin with 12%, and Gojek with 2%.
The gross merchandise value (GMV) of Vietnam’s food delivery market was estimated at $1.1 billion per Momentum Works’ data.