Delivery Hero has to give up order app Yogiyo in South Korea from regulators. Only then can the $ 4 billion takeover of rival Woowa Brothers continue.
After China and the United States, South Korea is the largest food delivery market, and Yogiyo is the second most important order app. Woowa’s app is in the first place. Korea Fair Trade Commission (KFTC) now has to force selling of Delivery Hero’s full stake in Yogiyo within six months, otherwise the combined market share is far too high.
It is unclear what the decision will mean for the very competitive industry in South Korea and the need for the deal between Delivery Hero and Woowa. They do point out that if Woowa’s app is in the estate of Delivery Hero, they are still the largest by distance. The Woowa app covers about 82% of the market.