The Whole Country is 'Satisfied with Delivery'... Regional Areas Increased More

Among 17 Cities and Provinces, 12 More Than Double; Nationwide Cases Surge to 16.7 Million Last Month

[Asia Economy Reporter Kim Cheol-hyun] Last month, delivery orders surged nationwide due to the resurgence of the novel coronavirus infection (COVID-19). Delivery services have become clearly "nationalized," with a significant increase compared to the previous year not only in the metropolitan area but across all 17 metropolitan cities and provinces nationwide. Some regions saw increases of more than three times. The number of restaurants newly requesting delivery services continues to rise, and the nationwide increase in delivery orders is expected to continue this year as well.

According to Barogo, a delivery agency, on the 13th, delivery orders doubled or more compared to the same period last year in 12 out of 17 cities and provinces in December. In 70% of the nationwide cities and provinces, the increase rate of delivery orders handled by this company exceeded 100%.

◆ Regional Delivery Increases Further = The region with the highest growth rate was Gangwon-do, where deliveries increased by 254.5% compared to the previous year. Jeollanam-do followed with a growth rate of 181.7%. Next were Chungcheongnam-do (174.2%), Jeollabuk-do (171.3%), and Gyeongsangnam-do (169.5%). Among major metropolitan cities, Busan showed a 145.1% increase, Daegu 123.7%, and Ulsan 120.5%. The metropolitan areas of Gyeonggi-do (119.0%), Seoul (111.5%), and Incheon (110.0%) also recorded growth rates above 100%.

It is notable that regions outside the metropolitan area or major cities showed higher growth rates. Considering that the nationwide delivery order increase rate for this company in December was 156.7%, the top five regions?Gangwon, Jeonnam, Chungbuk, Jeonbuk, and Gyeongnam?showed delivery growth exceeding the national average. An industry official explained, "Delivery demand has been steadily increasing in metropolitan and large cities, and the particularly prominent increase in regional delivery rates shows that delivery has become a nationwide common service due to social distancing measures and special year-end and New Year quarantine policies related to COVID-19."

◆ Delivery Increase Continues Due to COVID-19 Impact = Monthly data confirms the impact of COVID-19 spread on delivery demand growth. In February last year, Barogo handled 6.9 million delivery orders nationwide, which surged to 9.8 million in March during the first wave of COVID-19. The upward trend continued, reaching 13.5 million in August during the second wave. As the spread of COVID-19 subsided, deliveries decreased to 12 million in October but rose again to 13.1 million in November with the start of the third wave. In December, it soared to 16.7 million. For the entire last year, this company handled 133.22 million delivery orders nationwide, an increase of 134.0% compared to the previous year, significantly surpassing the 87.7% growth rate in 2019.

The industry expects that with the nationalization of delivery services and the increasing number of restaurants adopting delivery, the delivery market will continue to grow in scale this year. In December last year alone, 59,000 restaurants requested at least one delivery through Barogo, a 25.5% increase compared to August during the second wave, maintaining an upward trend. An industry official said, "The number of new places adopting delivery services has increased due to COVID-19, and not only restaurants but also daily goods companies are introducing delivery services," adding, "The nationwide increase in delivery orders is expected to continue this year as well."