[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province has received a favorable report card from the pilot operation results of the Chungnam-type delivery app. It confirmed the effect of replacing the market share of existing delivery apps in the region within a short period. Based on this, the province plans to expand the service area of the Chungnam-type delivery app to the entire Chungnam region.
According to the province on the 22nd, the Chungnam-type delivery app "Somunnan Shop" underwent a two-week pilot operation in Gyeryong City starting from the 5th.
During this period, the app achieved a performance of occupying 40% of the average order volume of the existing delivery app company A, which accounts for 80% to 90% of the total delivery orders in Gyeryong City.
This suggests the possibility that the province-designated delivery app could replace the commercial delivery apps that have already established a foothold in the market.
These results are attributed to the fact that the Chungnam-type delivery app operates as a public delivery app through a public-private partnership model, where business owners only pay a 1.7% order and payment commission without advertising or listing fees, reducing economic burden, and consumers can receive discount benefits linked to local currency.
The province is seeking to expand the region and scope of the Chungnam-type delivery app service by building on this momentum. First, it plans to extend the related service, which was limited to a pilot operation in Gyeryong City, to the entire Chungnam region.
Additionally, the province explained that if the Chungnam-type delivery app project is activated, it will be developed into a mobile app platform with added functions such as local commercial district analysis, and will also consider linking with call taxi functions.
To generate synergy effects in the early stages of the project, the province plans to promote app activation by receiving contributions from the private sector.
In this regard, on the 22nd, the province signed a tripartite business agreement with Korea Midland Power and the Chungnam Branch of the Korea Foodservice Industry Association.
The agreement mainly involves Korea Midland Power providing contributions to the Chungnam Branch of the Korea Foodservice Industry Association for promoting the delivery app.
According to the agreement, Korea Midland Power will contribute 100 million won in project funds to the Chungnam Branch of the Korea Foodservice Industry Association over the next three years, and the association will use the contributions for promotional expenses to establish and activate the Chungnam-type delivery app initially.
The province will take charge of administrative and financial support for project promotion and overall operation management.
Yang Seung-jo, Governor of Chungnam Province, said, "The success of the Chungnam-type delivery app depends on increasing the usage rate among residents. Although it is a challenging task, if the local community works together, we expect the Chungnam-type delivery app to become universal and widely used."
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