South Korean food delivery company Baemin has decided to cease its operations in Vietnam due to intense competition and economic headwinds, VnExpress International has reported.
Baemin, a joint venture of German and South Korean food delivery companies Delivery Hero and Woowa Brothers, will shutter its operations on 8 December 2023.
A Baemin representative was quoted by the publication as saying: “All its customers had been informed. Baemin’s decision to leave Vietnam was urged by global economic challenges and local intense competition.”
By winding up its food delivery business in Vietnam, Delivery Hero plans to focus on the larger markets.
Baemin notified its employees in September 2023 of its intention to scale down its operations in the country.
Until 8 December, the company will focus on fulfilling its commitments to its employees, drivers and eateries.
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Woowa Brothers entered the Vietnamese market in February 2019 and bolstered its presence in the region with the acquisition of VNMM, forming Woowa Bros Vietnam.
In 2020, it started a robot delivery service in the multipurpose housing complex in Gwanggyo, Suwon City, in South Korea.
The outdoor delivery robot Dilly Drive was used by residents and visitors.
Residents of apartments and studio flats could place orders from the restaurants and cafés within the apartment complex.
In November 2023, online food ordering and delivery platform Bolt Food decided to exit the Nigerian market.
The food delivery business, which launched operations in Nigeria in 2021, announced its exit in a statement: “At this time, we have made the difficult decision to discontinue our food delivery operations in Nigeria due to business reasons”.