Uber announced the acquisition of Coupang Eats' Asia business for $1.2 billion.
Why Coupang Eats
South Korea's food delivery market ranks fourth globally (behind China, the US, and India), but boasts extremely high delivery density—Seoul's population density is twice that of New York. Coupang Eats holds approximately 25% market share in South Korea, making it the second-largest food delivery platform.
Uber's Global Food Delivery Footprint
- North America: Uber Eats holds the #1 market share
- Europe: A three-way split with Deliveroo and Just Eat
- Latin America: PedidosYa serves as a key player
- Asia: Previously focused mainly on India and Japan, with South Korea being a gap
This acquisition fills in the South Korea piece of the puzzle.
The Endgame for Food Delivery
The global food delivery industry is moving toward an oligopolistic landscape: - Uber Eats: North America, Europe, Latin America - DoorDash: Primarily the US - Meituan: Absolute leader in China - Delivery Hero: Europe, the Middle East, and parts of Asia
In the food delivery arena, the endgame will likely be 3-4 global giants plus local niche players.
Uber's Dara said, "Delivery is our fastest-growing business," and judging by the pace of acquisitions, that's no empty claim.
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