Flash Update: Delivery Hero shares Woowa’s strong operational numbers for 2020 after a successful closing of transaction
- After successfully closing the transaction in relation to Woowa, Delivery Hero today shared details on Woowa’s operational performance in 2020, noting strong performance with 729 million orders (+75% yoy), GMV of EUR 11.6 billion (+73% yoy) and revenues of EUR 918 million (+102% yoy)
- Woowa has a strong presence in South Korea, grew its business in Vietnam substantially since 2019 and launched operations in Japan in December 2020
- In combination, Delivery Hero and Woowa processed more than 2 billion orders, generated more than EUR 24 billion GMV and over EUR 3.7 billion revenue in 2020
- The full-year guidance of Delivery Hero will be published in April 2021
Berlin, 16 March 2021 ﹣ After a successful closing of the transaction in relation to Woowa Brothers Corp. (“Woowa”), Delivery Hero SE (“Delivery Hero”) today published Woowa’s operational numbers for 2020, reaffirming the great potential of the strategic partnership between the two companies and of the Korean delivery industry at large. The transaction reinforces Delivery Hero’s position as the world’s leading local delivery platform. With higher order volumes, more markets and customers than any other food delivery platform, Delivery Hero is now worldwide the largest food delivery platform outside of China.
As the operator of the largest online food delivery platform in South Korea (“Baedal Minjok” or “Baemin”), Woowa achieved strong growth during 2020 while delivering a positive preliminary EBITDA of EUR 14 million. In 2020, the Woowa group processed 729 million orders (+75% yoy), generating a GMV of EUR 11.6 billion (+73% yoy). Woowa’s revenues grew by 102% year-on-year to EUR 918 million in 2020. In combination, Delivery Hero and Woowa processed more than 2 billion orders, generated more than EUR 24 billion GMV and over EUR 3.7 billion revenue in 2020.
Baemin offers both a marketplace and an own-delivery service for restaurants in Korea, a sector with significant growth potential. Throughout the challenging times of COVID-19, Baemin offered vital support to its partners, working with around one third of all restaurants in South Korea today. Less than two years since entering Vietnam in February 2019, Woowa’s business in the country grew substantially. Baemin is currently active in the two largest Vietnamese cities (Ho Chi Minh City and Hanoi). Woowa also launched its services in Japan in December 2020.
In addition to its core food delivery service, Woowa continues to innovate the food ecosystem with new verticals including restaurant supplies and robotics. Like Delivery Hero, Woowa also believes in the potential of quick commerce – the future of e-commerce, defined as bringing groceries and household items to customers in under 60 minutes. In 2019, Baemin opened their first B-Marts (equivalent to Delivery Hero’s Dmarts), which are Baemin-owned small local warehouses optimized for delivery. Baemin added 16 B-Marts in 2020, with a total of 32 B-Marts in South Korea by the end of December, mostly present in the Seoul area. B-Marts showed strong growth with 10 million orders, EUR 102 million GMV and EUR 107 million revenue for 2020.
After having announced that Delivery Hero and Woowa were to enter into a strategic partnership in December 2019, Delivery Hero finalized all actions to close the transaction on March 2, 2021. The Delivery Hero share capital increase and the subsequent admission for trading were completed on March 4, 2021. The consideration of the transaction consists of a cash and a share component. As a result of strong operational performance, the Delivery Hero share price – and therefore the value of the consideration – has increased significantly since signing the transaction in December 2019. Based on the share price at closing, the final transaction value is approximately EUR 5.7 billion. Delivery Hero will publish its full-year guidance in April 2021.
ABOUT DELIVERY HERO
Delivery Hero is the world’s leading local delivery platform, operating its service in more than 40 countries across Asia, Europe, Latin America, the Middle East and North Africa. The company started as a food delivery service in 2011 and today runs its own delivery platform on four continents. Additionally, Delivery Hero is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 10-15 minutes. Headquartered in Berlin, Germany, Delivery Hero is listed on the Frankfurt stock exchange since 2017, and became part of the leading index DAX (Deutscher Aktienindex) in 2020. For more information, please visit www.deliveryhero.com
Woowa operates South Korea’s largest online food delivery platform under its brand “Baedal Minjok.” Woowa ceaselessly works to innovate the food-tech industry through, amongst others, crowd-sourcing rider systems, robotics technology, and virtual kitchens. Woowa has also launched an instant grocery delivery service called “B-Mart”, which provides grocery delivery services under 30 minutes. Woowa has operations in South Korea, Vietnam and Japan. The company has more than 1,100 employees in its headquarters, and approximately 1,700 employees including affiliates.
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This release may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE (“forward-looking statements”). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.