FRANKFURT AM MAIN (AFP) – German takeaway giant Delivery Hero yesterday said it had agreed to buy South Korea’s largest food delivery app Woowa in a EUR3.6 billion (USD4 billion) deal aimed at beefing up its presence in Asia.
Delivery Hero will first acquire an 82-per cent stake in Woowa before taking full ownership “over time”, it said in a statement.
The deal will see the firms combine forces to take on major rivals like Gojek, UberEats and Grab in Asia at a time of fierce competition and consolidation in the booming sector of online food delivery services. Woowa founder and CEO Kim Bong-jin said teaming up with Delivery Hero would allow it “to facilitate expansion in Asia, as well as to further penetrate the high potential Korean market”. Under the terms of the cash-and-shares acquisition, the two companies will create a joint venture based in Singapore and headed by Kim.
Founded in 2010, Woowa is South Korea’s biggest food delivery platform, racking up some 30 million orders a month.
Delivery Hero has risen to become one of Germany’s most successful start-ups since it was founded in 2011.