The encyclopedia · Sales & Retail · Strategic decision · 2019–2023
Baemin spent four years in Vietnam's delivery war, then shut down without a profit
Baemin entered Ho Chi Minh City in 2019. By December 2023 it had about 12% share, no profit, and a goodbye note to restaurants.
Baemin · Delivery Hero · Woowa Brothers · 2023-12-08
What it means today
When a delivery or marketplace plan assumes third-place share can eventually become profit, Baemin Vietnam shows what happens when competition stays irrational longer than the entrant's budget.
What happened
Baemin entered Vietnam in June 2019, starting in Ho Chi Minh City, and joined a food-delivery market already fought over by Grab and ShopeeFood. By 2022, VIR reported Grab at 45% share, ShopeeFood at 41%, and Baemin at about 12%.
In November 2023, Baemin told partner restaurants that it would leave Vietnam on December 8. The company said it would fulfil financial obligations and reimburse prepaid advertising and marketing expenses for December.
The exit ended a four-year Vietnam run. VIR and VietnamNet both attributed the retreat to global economic pressure, cut-throat local competition, mounting operating hurdles and the fact that the Vietnamese venture had never turned a profit.
Why it happened
- Baemin entered a delivery market where two incumbents already held most demand, making each percentage point of share expensive to buy.
- The service built recognisable share without building profit, so scale became evidence of subsidy burn rather than durability.
- Restaurant advertising commitments had to be unwound at exit, showing how marketplace growth creates obligations on both sides.
The lesson
Marketplace share is not a moat when the market is bought with subsidies. If the route to profit depends on rivals easing off, the exit plan matters from day one.
Aftermath
Baemin committed to settle obligations and refund prepaid December advertising and marketing expenditures. Its departure left Vietnam's food-delivery market more concentrated around Grab and ShopeeFood.
Sources
- Food delivery firm Baemin bids farewell to Vietnam — Vietnam Investment Review, November 2023
- Food delivery firm Baemin bids farewell to Vietnam — VietnamNet, November 2023
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