Uber Technologies files for FTC review of Delivery Hero stake acquisition

The Fair Trade Commission (FTC) of South Korea has initiated a preliminary examination into Uber Technologies Inc.'s intention to acquire a controlling stake in Delivery Hero SE, the parent company of Woowa Brothers Corp., the nation's top food delivery app. The U.S.-based Uber submitted the application for review concerning its plan to take full ownership of Delivery Hero. Should the FTC approve the deal in its preliminary assessment, Uber is anticipated to submit a formal application.

According to the FTC, Woowa Brothers boasted 23.4 million monthly active users in April, significantly surpassing the 13.15 million users recorded by its nearest competitor, Coupang Eats, which is managed by the South Korean e-commerce giant Coupang Inc. The FTC described the acquisition as a conglomerate merger, merging Uber's ride-hailing service with Delivery Hero's food delivery platform.

Should Uber gain control of Woowa Brothers, the leading food delivery platform in the country, it could potentially broaden its advertising and promotional initiatives, integrating ride-hailing and delivery services, leading to a possible merger of various services.

The FTC emphasized that Uber has also aimed to enhance cross-platform interaction between its mobility and delivery services. The FTC will conduct a thorough review of the proposed merger's impact on competition within South Korea's ride-hailing and food delivery app markets, adhering to the guidelines and procedures outlined in relevant laws. In 2017, Uber launched its Uber Eats service in South Korea, but withdrew from the nation's fourth-largest economy in 2019 due to Woowa Brothers' dominance of the local market.