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| Yogiyo's scooters are parked at the company local branch in Seoul on June, 2020. Yonhap |
By Kim Jae-heun
Delivery Hero has closed its Yo Mart on-demand grocery delivery service in Korea. The company said it closed down 10 distribution centers in Seoul that had been rented until 2022, terminating the contract early due to intensifying competition in the quick commerce industry.
"Quick commerce is a service that delivers daily necessities to customers within 30 minutes utilizing fulfilment centers established in local towns. Ending the rent contracts for the facility means Delivery Hero will no longer run a quick commerce business in Korea," an industry source said.
Delivery Hero Store Korea (DHSK), the subsidiary that operates Yo Mart, terminated as of last month rental contracts for its distribution centers located in Gangnam, Songpa and Gwanak districts of Seoul. A former DHSK official said the company no longer operates any of the 10 fulfilment centers in Seoul.
Delivery Hero ended Yo Mart's service in September.
There was talk of a possible merger with B Mart, a quick commerce service operated by Baedal Minjok, since the two services were owned by the same parent company, Delivery Hero. B Mart operated some 30 distribution centers in the capital area and combining them with Yo Mart's facilities was thought to create synergy for both services.
However, Delivery Hero confirmed that there will be no merger between the two services.
"Not to speak of a merger, Delivery Hero Store Korea has no staffers working," a Delivery Hero official said.
Key members of DHSK's board, who led the launch of the Yo Mart service in Korea, have already left the company. Its CEO Kim So-jung resigned as of June and the chief financial officer appointed to lead the company was also excluded from the board in October.
David Pieter, who led the introduction of Yo Mart with Kim, went to Baedal Minjok and became a director there. Dilip Stephane Russenaly, who became the new head of DHSK, oversaw the closure of Yo Mart. Delivery Hero told local media that the appointment of Roussenaly was intended to take charge of the legal process after selling Yogiyo.
Meanwhile, Yo Mart remained with Delivery Hero after the company sold off its main food delivery service, Yogiyo, to retailer GS Retail in August.
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