The 'Single-Order Delivery' War with Coupang Eats... 'Baemin1' Launches Today

Woowa Brothers, Franchisee Commission Discount Promotion
Coupang Eats, Free Delivery Fee Event for First-Time Customers
Up to 6,500 KRW Delivery Fee per Order to Mobilize Delivery Drivers

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Baedal Minjok and Coupang Eats, the two giants in the food delivery service industry, are officially entering the 'single-order delivery' war. They are deploying various promotions to attract service users, restaurant owners, and delivery drivers to their platforms in order to increase market share.

According to the industry on the 8th, Woowa Brothers, the operator of Baedal Minjok, will launch the 'Baemin1' service, which delivers only one order at a time, starting from Songpa-gu, Seoul. The Baedal Minjok app's home screen, which will be revamped on the same day, will prominently feature the Baemin1 service. Baemin1 is a rival to Coupang Eats' single-order delivery service, which started in May 2019. Since April, over 40,000 restaurants have reportedly signed up for Baemin1 after applying for the service.

Baemin1 and Coupang Eats are own delivery services that handle not only order mediation but also delivery. In other words, dedicated delivery drivers using the Baemin1 or Coupang Eats programs handle the deliveries without involving third-party delivery agencies. To recruit dedicated delivery drivers, relatively high delivery fees must be offered. Since drivers deliver only 1 to 2 orders per hour, their earnings may decrease compared to when performing bundled deliveries. While single-order delivery has gained consumer approval due to its speed, restaurant owners must bear higher delivery fees and platform commissions accordingly.

To address this, Woowa Brothers is running a promotion for over 90 days, offering discounts on mediation fees and delivery charges to restaurant owners who join Baemin1. The mediation fee is reduced from 12% of the order amount to a flat 1,000 KRW per order, and the delivery fee is lowered from 6,000 KRW to 5,000 KRW per order. Additionally, various coupon supports and advertising discounts are used as strategies to increase restaurant owners' participation in Baemin1.

Coupang Eats has been running a free delivery fee promotion for first-time customers since the 1st. If customers visit Coupang Eats daily for 30 days after signing up, they receive one free delivery coupon per day. This can be seen as a tactic to convert Baedal Minjok users to Coupang Eats and increase market share.

As delivery drivers' compensation rises, competition to recruit drivers is intensifying. Woowa Brothers is currently holding an event where riders who complete more than 10 deliveries are entered into a draw to win prizes such as the Ioniq 5 and electric bikes. Coupang Eats also runs a reward program that offers delivery fee bonuses up to 6,500 KRW based on order processing and peak time participation.

Balancing the number of food orders and delivery drivers is crucial for single-order delivery. If there are fewer drivers than orders, deliveries get delayed due to backlog; if there are fewer orders than drivers, drivers may leave for other services due to reduced work. An industry insider said, "The two companies will continue their cutthroat competition to dominate the single-order delivery market for the time being," adding, "Once promotions end, side effects such as increased delivery fees or food prices may occur."

This content was produced with the assistance of AI translation services.