Competition Heats Up in Single-Order Delivery Triggered by Coupang Eats

Baemin Launches 'Single-Item Delivery' Service from June
Wemakeprice O to Develop 'Single-Item Delivery' Service Within the Year
Coupang Responds with Launch of Coupang Eats Service

[Asia Economy Reporter Kim Cheol-hyun] The domestic delivery application (app) market is shaking up due to the 'single-order delivery' competition ignited by Coupang Eats. As the number of users of Coupang Eats, where one delivery rider handles one order, rapidly increases, competitors including Baemin, the market leader, are preparing to launch single-order delivery services one after another. As single-order delivery spreads, the existing bundled delivery may be perceived as a relatively low-quality service, forcing companies to enter the single-order delivery market despite financial losses.

Woowa Brothers, which operates Baemin, announced through the 'Baemin Sajangnim Plaza,' a website for store owners, that it will launch the single-order delivery service 'Baemin1' in June. The plan is to start in some areas of Seoul and gradually expand. The existing 'Baemin Riders' service will be transitioned to Baemin1. Baemin explained, "As customers' expectations for positive delivery experiences increase, demand for single-order delivery services that allow the fastest delivery after pickup is growing, and store owners' need for new delivery services that can respond to this is also increasing. Therefore, we are introducing a new service, Baemin1 (one), based on single-order delivery."

According to Baemin, Baemin1 is a service that provides everything from ordering to delivery. Stores can be exposed and receive orders in a separate area from the Baemin category list, and upon ordering, single-order delivery is provided directly to the customer after pickup. Woowa Brothers plans to temporarily change the brokerage fee from 12% per order to a fixed 1,000 KRW and reduce the delivery fee from 6,000 KRW to 5,000 KRW per order to promote the use of this service.

WEMAKEPRICE O is also preparing a single-order delivery service. WEMAKEPRICE O signed a memorandum of understanding (MOU) with LK ICT, a company specializing in location-based services, to build a system that matches food orders and delivery riders one-to-one. Through this, they plan to complete the development of a single-order delivery service using delivery agencies and individual delivery riders within the year.

Store owners registered with WEMAKEPRICE O can choose the delivery method that suits their store situation among ▲direct delivery ▲bundled delivery using delivery agencies ▲WEMAKEPRICE O single-order delivery. WEMAKEPRICE O is strengthening its market position based on fair commissions and marketing support in cooperation with store owners. Following the introduction last month of a loyalty management feature that allows store owners to conduct marketing without additional costs, they are now pushing forward with the single-order delivery service to expand delivery options. A WEMAKEPRICE O official said, "We will accelerate the construction of the single-order delivery service to enhance convenience and satisfaction for both customers and store owners. We will continue to introduce services that meet various needs."

Coupang has also decided to launch a specialized subsidiary, Coupang Eats Service, to respond to the increasing nationwide demand through single-order delivery. Coupang Eats Service manages service teams that support customers, store owners, and delivery partners, as well as operate delivery partners. Coupang Eats Service plans to provide enhanced service and support to all Coupang Eats users through a system that responds in real time to inquiries from all customers, store owners, and delivery partners. Additionally, through this support system, delivery partners are expected to work flexibly and adjust their schedules.