Delivery Increased by 12% After Implementing Level 2 Social Distancing in the Seoul Metropolitan Area
GS25, CGV, Starbucks Strengthen and Introduce Delivery Services
On August 30, when the 'Level 2.5 social distancing measures' were implemented due to the resurgence of COVID-19, motorcycles were parked at the Baemin Riders Southern Center in Gangnam-gu, Seoul. Photo by Yonhap News
[Asia Economy reporters Han Seung-gon and Kim Young-eun] "It's definitely more reassuring to order delivery at home than to go to a restaurant," "It's convenient, fast, and safe, so I like it."
With the rapid spread of the novel coronavirus (COVID-19) and the elevation of social distancing measures to Level 2 in the Seoul metropolitan area, quarantine rules have been strengthened, leading to an unexpected boom in the delivery industry. It has been revealed that companies that previously did not offer delivery services are now adopting them one after another. In particular, Starbucks, which had not offered delivery services at all until now, has also introduced delivery services.
Since the COVID-19 outbreak, demand for delivery services has steadily increased. Along with the food service industry such as restaurants and cafes, convenience stores and movie theaters are also strengthening their existing delivery services accordingly. The 'delivery culture,' where people order food at home rather than eating at restaurants and risking infection by facing many unspecified people, seems to be socially solidifying.
According to delivery agency 'Barogo' on the 26th, on the first day of the Level 2 social distancing implementation in the metropolitan area, the 24th, the number of delivery orders nationwide was about 470,000, an increase of about 12% compared to the previous day, the 23rd. Also, the number of riders who completed at least one delivery per month increased by 53% from 13,200 in February, right after COVID-19, to 20,200 in September.
Furthermore, 'Yogiyo,' an order brokerage company that guarantees delivery within 30 minutes, has seen a recent surge in orders for its popular restaurant delivery service 'Yogiyo Express,' to the extent that consumers sometimes cannot get assigned riders when placing orders.
In response, convenience store GS25 announced on the 26th that it would introduce delivery services at about 5,000 stores through 'KakaoTalk Order,' the first in the convenience store industry. Previously, GS25 had piloted delivery services at about 20 stores in major commercial areas of the metropolitan area since May.
Also, CGV is expected to strengthen its existing delivery services, announcing plans to list popcorn on the delivery app 'Coupang Eats' starting next month.
Earlier, CGV first introduced popcorn delivery service through 'Yogiyo' in nine theaters in the metropolitan area in 2017. After the spread of COVID-19, in April, the number of theaters offering delivery expanded to 16 major cities including Seoul, Gyeonggi, Daegu, Gwangju, Busan, and Ulsan.
A CGV official explained, "With the implementation of Level 2 social distancing, eating any food except water and beverages inside theaters is prohibited, so demand for takeout orders and delivery services is expected to increase further."
A rider in charge of beverage delivery is waiting for drink packaging at the Starbucks delivery store on the 27th. Photo by Yonhap News
Meanwhile, companies that previously did not use delivery services have recently started to introduce them. Starbucks launched its first domestic delivery service on the 27th. Starbucks Coffee Korea began operating a 100㎡ 'delivery specialty store' inside Emart Yeoksam branch in Gangnam-gu, Seoul on the same day.
Previously, Starbucks did not offer delivery services in Korea due to difficulties in maintaining quality, but as the COVID-19 situation prolonged and in-store dining was banned with ongoing business restrictions, they started delivery services. A Starbucks Coffee Korea official explained, "Due to the impact of COVID-19, interest in contactless services has increased, so many customers are seeking these services."
Citizens have also shown positive responses to delivery services amid the COVID-19 spread. Eating at crowded restaurants increases the risk of exposure to infection through droplets.
A 24-year-old university student, A, said, "I usually didn't eat delivery food often, but this year I think I've used delivery services more than ever before. Even with family, instead of dining out, we order food at home, and using delivery services feels safer from COVID-19."
A added, "Unless COVID-19 is completely over, delivery services will likely increase further. The range of delivery food, which used to feel somewhat limited, has expanded, so from a consumer's perspective, it's convenient and makes me use it more often."
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