COVID-19 Resurgence? Delivery Orders Do Not Increase

No Social Distancing and Overlapping Vacation Season
Delivery Cost Burden Also Plays a Role

The impact of the COVID-19 resurgence on the delivery platform market appears to be minimal. This is quite different from the sharp growth seen in delivery platforms during the previous COVID-19 outbreak. Since there were no regulations such as social distancing despite the spread of COVID-19, and the resurgence coincided with the vacation season when outdoor activities are frequent, the effect on the market is considered limited.

According to Mobile Index by data company IGAWorks on the 8th, the number of users in the delivery application (app) category on Android and iPhone (iOS) smartphones last month was 23.61 million. Although the COVID-19 resurgence began in earnest from early July, the number of delivery app users increased by only 230,000 compared to the previous month. In fact, compared to March, the number decreased by about 870,000. While there has been a slight increase in users since the COVID-19 resurgence, it is still insufficient to recover the previous decline.

Looking at user trends by each company, the impact of the COVID-19 resurgence is also minimal. Last month, the monthly active users (MAU) of Baemin (Baedal Minjok), Yogiyo, and Coupang Eats were recorded at 20.2 million, 7.6 million, and 4.19 million, respectively. Compared to the previous month, Baemin and Yogiyo increased by 220,000 and 140,000 users respectively, but Coupang Eats lost 180,000 users. Compared to December last year, Baemin, Yogiyo, and Coupang Eats all decreased by 540,000, 1.45 million, and 2.83 million users respectively. This indicates that the recent increase in users due to the COVID-19 resurgence is far from enough to compensate for the decline in the first half of the year.

This pattern differs from the first half of last year when users sharply increased along with the spread of COVID-19. In July last year, Baemin, Yogiyo, and Coupang Eats increased their users by 3.58 million, 440,000, and 2.42 million respectively compared to December of the previous year. Even the month-to-month increase was significantly higher last year, with Baemin and Yogiyo recording increases of 610,000 and 460,000 users respectively, showing a big difference from this year.

Industry insiders point to the continued full lifting of social distancing measures as the main reason why COVID-19 now has less impact on the delivery platform market. Although confirmed cases continue to rise, the autonomous quarantine system without social distancing means the resurgence does not lead to reduced dining out and increased delivery orders. Additionally, seasonal factors such as the vacation period are also obstacles to user growth. According to Baemin’s own survey, 62% of respondents said sales drop during the vacation season.

A delivery industry official said, "Recently, as prices have soared, more consumers feel burdened by the cost of delivery services, and awareness of infectious diseases has weakened, so unlike before, the impact of the COVID-19 outbreak on the market seems limited."