Woowa Brothers reports 48.6 billion won net loss in 2020
Woowa Brothers, operator of the Baedal Minjok delivery app, lost money for another year despite business booming during the pandemic.
According to the company’s regulatory filing, it recorded a net loss of 48.6 billion won ($42.9 million) in 2020. Revenue came in at 1.1 trillion won, up 94.4 percent.
Delivery-order transactions placed on Baedal Minjok totaled 15.7 trillion won in 2020, a 78.4 percent increase from the previous year.
The result comes a decade after founder Kim Bong-jin started the food delivery business in Korea in 2011.
In 2019, the company’s net loss was 75.6 billion won as it spent heavily on marketing and promotions, according to the company.
In 2020, it spent some 80 billion won to support delivery drivers, restaurant owners and frontline workers during the pandemic.
The food delivery company is currently looking to enter the Southeast Asian market. Woowa DH Asia, a 50-50 joint venture set to open in Singapore, will run the delivery business in 15 countries.
“Competition is escalating in the food delivery market both domestically and internationally,” Kim Beom-joon, CEO of Woowa Brothers, said in the statement. “By taking a close look at changes of customer demand and the market, Woowa Brothers will work harder to establish itself as a leading company seeking innovation in the industry.”
BY CHEA SARAH [firstname.lastname@example.org]