Domestic Food Delivery App Market Surpasses 1 Trillion KRW in Sales After 11 Years of Development
Operating Losses of 11.2 Billion KRW Last Year... Deficit Reduced by 69% Compared to Previous Year
[Asia Economy Reporter Kim Cheol-hyun] Woowa Brothers (CEO Kim Beom-jun), the operator of 'Baedal Minjok (Baemin)', surpassed 1 trillion KRW in sales last year. The sales generated by self-employed individuals through Baemin (app transaction amount) exceeded 15 trillion KRW.
Woowa Brothers announced through its earnings disclosure on the 30th that it recorded consolidated sales of 1.0995 trillion KRW last year. This figure represents a 94.4% increase compared to the previous year, marking the beginning of the 1 trillion KRW sales era just 10 years after entering the domestic food delivery app market in 2010. Operating loss was 11.2 billion KRW due to fierce marketing competition and promotional expenses. Although it recorded losses for two consecutive years, the deficit decreased by 69.2% compared to the previous year.
Last year, Woowa Brothers supported interest payments on COVID-19 policy loans for self-employed restaurant owners, including those listed on Baemin, and refunded 50% of advertising costs in four installments. They also provided living expenses for riders who were quarantined or faced financial difficulties due to COVID-19. The total amount supported for small business owners, riders, and COVID-19 medical staff over the past year reached approximately 80 billion KRW.
According to Statistics Korea, the online food delivery market has grown more than sixfold in the past three years. The sales generated by merchants listed on Baemin first surpassed 1 trillion KRW in 2015, increased to about 5 trillion KRW in 2018, and jumped to the 15 trillion KRW range last year. Considering that last year was a challenging year for small restaurant owners due to prolonged COVID-19 restrictions, this achievement stands out. Baemin explained that by connecting customers and restaurants through various order types such as delivery and takeout, it contributed to helping small restaurant owners overcome difficulties.
Last year, Woowa Brothers actively ventured into new businesses. To expand sales channels for small business owners struggling due to COVID-19, they launched the 'Jeon-guk Byeolmi' service. This service directly connects producers and consumers, delivering fresh food from various regions nationwide via direct shipment from production sites. They also accelerated their robot development business. They operated 'Dilly Drive,' the first autonomous delivery robot in large apartment complexes in Korea, and are currently piloting 'Dilly Tower,' a delivery robot operating within hotels. Recently, they partnered with Hyundai Motor Company and Kia to commercialize delivery robots.
Woowa Brothers plans to leap forward as the number one food tech company this year by innovatively improving customer experience. 'Baemin Shopping Live,' launched on the 9th, is being recognized as the first delivery app to open a new channel for consuming food through live broadcasts. The biggest advantage is the ability to communicate with customers in real time through comments and share stories about food.
With the official completion of the merger with Delivery Hero, Woowa Brothers is also embarking on a new challenge of pioneering Southeast Asia. Through 'Woowa DH Asia,' established in Singapore, they plan to oversee delivery services in 15 Asian countries. Kim Beom-jun, CEO of Woowa Brothers, said, "There is currently active competition for innovation in the domestic and international food delivery markets. Woowa Brothers will establish itself as a leading company in Korea and Asia by sensitively observing changes in consumer demands and market competition and leading innovation."
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