'Tug of War' in the Chaotic Delivery App Market

While Baemin Stagnates at No.1, Yogiyo and Coupang Eats Narrow the Gap
'Delivery Fee Increase' as a New Variable Too

The 'delivery war' among Baedal Minjok (Baemin), Yogiyo, and Coupang Eats has become even more intense this year. While Baemin maintains its top position and Yogiyo and Coupang Eats continue to chase behind, a closer look reveals that as Baemin remains stagnant, the second and third places have steadily grown, narrowing the gap. Moreover, with the recent variable of delivery fee increases, the market is expected to become more competitive going forward.

According to Mobile Index by data company IGAWorks on the 10th, last month’s monthly active users (MAU) of Baemin, Yogiyo, and Coupang Eats on Android and iPhone (iOS) smartphones were 20.73 million, 8.92 million, and 6.58 million respectively. Baemin saw its user base grow to 21.48 million in August last year, then decline, followed by a slight rebound in December during the delivery peak season, but it has not regained upward momentum. Considering that six months ago in July last year the user count was 20.74 million, this indicates growth stagnation.

On the other hand, Yogiyo and Coupang Eats increased their users by 9% and 25% respectively during the same period. In particular, in December, Yogiyo surpassed 9 million users and Coupang Eats exceeded 7 million, setting new records. Especially after Yogiyo launched a new subscription service and intensified marketing in November, it saw nearly 1 million new users in just one month. As Baemin, which had been far ahead, faltered, the chase by Yogiyo and Coupang Eats intensified, and now the three companies are fiercely competing to secure even a single additional user.

Furthermore, the competition has become more complex as Baemin and Coupang Eats, which had been engaged in an all-out battle with ‘single-order delivery’ where one rider handles one order, announced plans to revise their pricing structures. Both companies have lowered commissions and delivery fees, but considering that discounts (promotions) had been applied until now, actual delivery fees are expected to rise.

First, Coupang Eats decided to stop the promotions it had continuously extended in the Seoul area. Once the promotion period ends, the new pricing plan revised on the 3rd will be applied. Until now, Coupang Eats’ promotion offered a structure of '1,000 KRW commission and 5,000 KRW delivery fee.' The most common new pricing plan, the 'standard commission type,' charges a 9.8% commission and a 5,400 KRW delivery fee. Baemin will also end the promotion for its single-order delivery service 'Baemin1' from the 21st of next month and apply the revised pricing plan in Seoul, Gyeonggi, and Incheon from the following day. The new pricing plan, based on the standard type, charges a 6.8% commission and a 6,000 KRW delivery fee. Compared to the promotional price of '1,000 KRW commission and 5,000 KRW delivery fee,' this effectively increases the cost burden on both store owners and consumers.

A delivery industry insider said, "In the delivery market where users tend to selectively use apps based on various discounts, it is difficult to predict how the increase in delivery fees will change the market landscape."

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