‘Upchireok Dwichireok’ Baemin vs Coupang Eats Single-Order Delivery Competition

August Monthly Active Users (MAU): Baemin Records 21.48 Million, Coupang Eats 5.48 Million

[Asia Economy Reporter Kim Cheol-hyun] As the competition for 'single-order delivery' between Baedal Minjok (Baemin) and Coupang Eats expands nationwide, a back-and-forth situation is unfolding. In the 'single-order delivery' market where one delivery rider handles one order, Coupang Eats' user growth, which had stalled due to Baemin's offensive in the second half of this year, is gradually recovering as the front expands and time passes. With no one clearly in the lead, delivery demand continues due to the extension of social distancing, and the competition is expected to intensify further.

According to Mobile Index by data company IGAWorks on the 22nd, last month, based on Android and iPhone (iOS) smartphones, Baemin and Coupang Eats recorded 21.48 million and 5.48 million monthly active users (MAU), respectively. Compared to July, when the full-scale single-order delivery war began, Baemin's users increased by 3.6%, and Coupang Eats also grew by 4.1%. In July, when Baemin completed its single-order delivery service network covering all of Seoul, Coupang Eats' users decreased by 4.3% compared to the previous month. Coupang Eats' user growth graph, which had been suppressed by Baemin's offensive, has returned to its main trajectory within a month.

However, since Baemin launched its single-order delivery service 'Baemin1,' it has been rapidly expanding its service areas, so the market situation can change at any time, according to industry consensus. Baemin announced that from the 7th, Baemin1 service opened in Incheon Metropolitan City, Daejeon Metropolitan City, and Daegu Metropolitan City. Following last month's launch in Gwangju, Busan, and Ulsan Metropolitan Cities, single-order delivery is now available in six metropolitan cities nationwide. Since starting Baemin1 service in Songpa-gu, Seoul in June, the service area has been rapidly expanding. Next month, Baemin plans to officially open services in Gyeonggi-do's Uiwang-si, Gwacheon-si, Gwangmyeong-si, and Gunpo-si, strengthening its metropolitan area service. According to the industry, the number of Baemin1 registered stores has been increasing by an average of 50% per month since registration began in April.

Thanks to the expansion of Baemin1, Baemin's order volume exceeded 100 million last month. Delivery Hero, the parent company of Woowa Brothers, announced at the end of last month that Baemin's orders in August surpassed 100 million, expressing high expectations for the single-order delivery service. Delivery Hero stated, "We are investing to increase Baemin's own delivery (single-order delivery) in Korea, and in June, the order share already reached 8%, and 29% in Seoul," adding, "We will continue to expand this service to new cities and aim to achieve 15 million orders by December."

The competition in the single-order delivery service also leads to a competition to secure delivery riders. Unlike the bundled delivery method, which handles 3 to 4 orders at once, single-order delivery requires sufficient delivery riders. This is why each delivery platform is focusing on improving delivery riders' compensation and working conditions. An industry insider said, "As Baemin's single-order delivery service, the number one player, is fully launched to compete with Coupang Eats, which rapidly grew by leading single-order delivery, the market is shaking," adding, "With the prolonged social distancing due to COVID-19 increasing demand, competition among companies to capture this demand is expected to become even fiercer."