Seoul's 'Zero Delivery Union' Marks 2 Years... Franchise Stores Double, Sales Increase 6 Times

Franchise Stores Increase from 30,592 to 56,712, Sales from 5.8 Billion KRW to 34.3 Billion KRW... Market Share Rises from 0.7% to 3%
City-Led Public-Private Partnership to Address High Delivery Brokerage Fees

[Asia Economy Reporter Lim Cheol-young] The public delivery service 'Zero Delivery Union' created by the Seoul Metropolitan Government has seen its annual sales increase sixfold within two years of its launch. The number of affiliated stores has also increased by about 1.8 times, and the domestic delivery app market share (MAU) has expanded from just 0.7% two years ago to 3% currently.

According to Seoul City on the 21st, the number of Zero Delivery Union affiliated stores, which was only 30,592 at the initial launch, increased to 56,712 as of the end of August this year, more than 1.8 times. Sales also rose sixfold from 5.798 billion KRW in 2020 to 34.36 billion KRW in August this year, and market share steadily increased from 0.72% to 1.53% last year and 3.02% this year.

'Zero Delivery Union' is a public-private partnership delivery service led by Seoul City to address the high commission fees of private delivery app companies. It gathers existing private delivery apps without separate construction and operating costs. Currently, the delivery apps affiliated with 'Zero Delivery Union' include four food delivery companies (Wemakeprice O, Ttaenggyeoyo, Meokkebi, Somunnan Shop) and three traditional market and mart companies (Nolleowayo Market, Mamma Meokja, Ro Market), totaling seven.

Seoul City will hold a payback event starting on the 29th to commemorate the second anniversary of the launch. To reduce the consumer burden caused by rising delivery fees, when paying 10,000 KRW or more with Zero Delivery Union, customers will receive 2,000 KRW worth of e-Seoul Love Gift Certificates, and for payments of 20,000 KRW or more, 4,000 KRW worth of e-Seoul Love Gift Certificates will be given. During the event period, individuals can receive payback up to 20,000 KRW. From the 29th to October 31st, a 'Happiness of 10,000 KRW' event will also be held, selecting 100 users daily to receive e-Seoul Love Gift Certificates worth 10,000 KRW.

Additionally, on the 29th, Seoul City will issue 5 billion KRW worth of 7% discount 'e-Seoul Love Gift Certificates' usable at 'Zero Delivery Union' and the small business exclusive section 'e-Seoul Love Shop(#)' on 11st. This is the second issuance following the 10 billion KRW issuance of e-Seoul Love Gift Certificates in July, with the first issuance of 10 billion KRW completely sold out.

Han Young-hee, Seoul City’s Director of Labor, Fairness, and Coexistence Policy, said, “Although delivery orders have increased due to COVID-19 and the rise of non-face-to-face consumption, small business owners are burdened by high delivery commission fees. We will prepare various measures to further activate Zero Delivery Union, which reduces the commission burden on small business owners and allows consumers to enjoy discounts through payments with Seoul Love Gift Certificates.”

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