In July 2018, Delivery Hero acquired a minority non-controlling stake in Glovo and progressively increased this stake through subsequent investments. In July 2022, Delivery Hero acquired sole control of Glovo

Well, there’s your problem

All the abovementioned practices were facilitated by Delivery Hero’s minority shareholding in Glovo. Owning a stake in a competitor is not in itself illegal, but in this specific case it enabled anti-competitive contacts between the two rival companies at several levels. It also allowed Delivery Hero to obtain access to commercially sensitive information and to influence decision-making processes in Glovo, and ultimately to align the two companies’ respective business strategies. This shows that horizontal cross-ownership between competitors may raise antitrust risks and should be handled carefully.

I suppose it can work if they still face robust external competition, like how Hyundai and Kia own stakes in each other and use their combined efforts to compete on the global market, but I also wouldn’t be surprised if even that has anticompetitive implications in their home market of South Korea, both for consumers and workers.

I can’t comprehend so many delivery services present and drivers I see on the street. I get that some people need them due to disability or some other reasons but not obviously as many as there are. I have never in my life ordered food to my house, much less download an app for it. I live in a city, a supermarket is like 5 minutes away.