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Corporation
MOBILE & TELECOMMUNICATIONS | Mobile Commerce / Food & Grocery
woowahan.com

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Founded Year

2010

Stage

Acquired | Acquired

Total Raised

$458.94M

Valuation

$0000 

About Woowa Brothers

Woowa Brothers operates the mobile app Baedal Minjok, aka Baemin, which enables local places that deliver food to connect directly with consumers via the company's smartphone application. Their application offers places based on location, user reviews, and menus. Woowa Brothers also offers Baemin Pay, which streamlines the mobile payment process by simplifying the self-certification to a single step, providing higher customer satisfaction in food ordering experience. After verifying payment card information once, users can make payments for their orders with simple 6-digit password. The company is also developing Baemin David, a self-developed artificial intelligence (AI) assistant that helps its customers choose menus and diners.

Woowa Brothers Headquarter Location

Jangeun Building, 2F 2, Wiryeseong-daero, Songpa-gu

Seoul, 05544,

South Korea

+82 1600-7001

Latest Woowa Brothers News

Woowa Bros. befuddled by increasing consumer dissatisfaction with Baemin

Oct 15, 2021

Posted : 2021-10-15 09:07 Updated : 2021-10-15 09:07 Baedal Minjok's food delivery scooters are parked in front of Woowa Brothers offices in Seoul on June 15. Korea Times file Lawmaker says Baemin is delivery platform with highest percentage of dissatisfied consumers By Kim Jae-heun Woowa Brothers, the company that operates the country's largest food delivery app, Baedal Minjok (Baemin), has been receiving the highest percentage of consumer dissatisfaction for its service among local food delivery apps. Baemin is undoubtedly one of the biggest beneficiaries of the ongoing COVID-19 pandemic, as a pioneer of Korea's food delivery platform service. It owns nearly two-thirds of the market share, followed by Yogiyo and Coupang Eats. On the one hand, its top position leads Baemin to receive more overall complaints than the other two rivals, because more people use it to order food online. On the other hand, Woowa Brothers claims that the relatively higher consumer dissatisfaction rate is primarily attributable to the differences in the logistics systems used by the various operators. "Ninety percent of orders customers make on our platform are delivered by drivers hired directly by restaurants or food delivery firms. We are not responsible for slow deliveries. People often have the misunderstanding that Baemin drivers deliver food more slowly," a Woowa Brothers representative said. "Coupang Eats gets fewer complaints because it only delivers food with its own drivers. We also started a similar service, called Baemin One, in June, and we make fast deliveries with it too," the representative added. Baemin provides an online platform that customers use to order food and restaurant owners use to receive orders. "If there is a problem with food quality, that is the restaurant's fault. If the delivery was slow, that is the driver or food delivery company's mistake. People often think we manage all of that. We are just a platform operator," the representative said. Woowa Brothers CEO Kim Beom-joon speaks at a meeting with representatives of political parties at the National Assembly in Yeouido on Feb. 15. Korea Times file According to a report from the Korea Consumer Agency (KCA) cited by Rep. Lee Joo-hwan of the conservative main opposition People Power Party, Baemin was picked as the platform with the highest percentage of dissatisfied consumers, compared to other food delivery apps. Over 58 percent of complaints reported to the KCA in last year were concerning Baemin, followed by Yogiyo with 38.2 percent and Coupang Eats with 2.5 percent. This year's report filed to the governmental agency in August has even worse findings than the previous year's report. There have already been 272 complaints submitted for Baemin, making up 61.2 percent of the total complaints. Yogiyo has 108 complaints, accounting for 24.3 percent of the total. Coupang Eats received 78 complaints, taking up 14.1 percent. Rep. Lee says that the soaring number of food delivery service users during the pandemic is the main factor contributing to the increase in consumer dissatisfaction. The biggest source of consumer dissatisfaction came from Woowa Brother's alleged involvement in breaching the contracts it had signed with local partners. Woowa Brothers had attempted last year to introduce a new ad fee system, which allegedly would lower commission fees by 1 percentage point to 5.8 percent per order, from the previous 6.8 percent. Baemin said that 52.8 percent of restaurant owners would end up benefiting from this policy, while large businesses would be restricted from monopolizing ad space on the mobile platform. However, the Korea Federation of Micro Enterprise claimed that the operator was playing tricks on businesses in order to increase the commission fees. Baemin's profit mainly comes from selling ad space on the platform, as well as from the commission fees it takes when customers order food via its platform. Other subjects of the complaints included the quality of the service, the unfair treatment of restaurants and the refusal to take responsibility for delivery drivers, as well as unilateral changes to contracts with restaurants after signing. There have been allegations of food delivery services using their power and leverage to kick restaurants off their platforms for failing to agree to their new fee charging policies. People have seen these incidents as acts of big companies bullying small businesses and the self-employed. Last year in June, the country's top antitrust regulator, the Korea Fair Trade Commission, fined Delivery Hero Korea, the company that operates food delivery app Yogiyo, 468 million won ($382,000) for taking advantage of its second-place market position between 2013 and 2016 to push a "lowest price policy" on restaurants, in which it required restaurant owners to offer their lowest prices only on Yogiyo.

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Research containing Woowa Brothers

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Woowa Brothers in 5 CB Insights research briefs, most recently on Sep 30, 2021.

Expert Collections containing Woowa Brothers

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Woowa Brothers is included in 3 Expert Collections, including Restaurant Tech.

R

Restaurant Tech

784 items

Hardware and software for restaurant management, bookings, staffing, mobile restaurant payments, inventory management, cloud kitchens, and more. On-demand food delivery services are excluded from this collection.

O

On-Demand

1,239 items

F

Food & Beverage Delivery (Grocery & Meal)

1,369 items

Startups and tech companies offering online grocery, food, beverage, and meal delivery services.

Woowa Brothers Patents

Woowa Brothers has filed 4 patents.

The 3 most popular patent topics include:

  • Online food ordering
  • Translation
  • Videotelephony
patents chart

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5/5/2017

11/3/2020

Online food ordering, Central banks, Telephone numbers, Videotelephony, Translation

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11/3/2020

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Online food ordering, Central banks, Telephone numbers, Videotelephony, Translation

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