Last Month's Delivery App Users Highest This Year
September Expected to See Peak Season, Chuseok Holidays, and Asian Games Boost
The delivery application (app) market is regaining momentum. Users who had left after the endemic phase (periodic outbreaks of infectious diseases) are returning. This is attributed to seasonal factors and various delivery fee reduction measures introduced by major delivery apps. With holidays and sports events that increase delivery demand expected after mid-September, the user growth trend is likely to gain further traction.
On the 19th, data company IGAWorks reported through Mobile Index that the total number of delivery app users (MAU) last month was 23,372,445. This is an increase of about 370,000 compared to the previous month, marking the highest number of users since August last year. Industry experts believe that seasonal factors such as heatwaves and vacation periods, along with competitive discounting efforts by each company to reduce delivery fee burdens, have won back users who had left after the endemic phase. The user growth led by Baemin (Baedal Minjok) and Coupang Eats, which are actively competing with discounts, supports this view.
Market leader Baemin recorded 20.18 million users last month. It is the first time in a year since August last year that Baemin’s user base has recovered to the 20 million mark. While second-place Yogiyo is faltering, the growth of Coupang Eats, which is tightening its pursuit, is also notable. Coupang Eats recorded 4.07 million users last month. Compared to the previous month, this is a 5.5% increase, surpassing Baemin’s 2.4% growth.
The industry analyzes that the strategies of delivery app companies are working in the market. The common factor is discounts. Since May, Baemin has allowed anyone to receive and use a 10% discount coupon. Coupang Eats has also been offering a 10% discount on delivery fees at designated restaurants for members of Coupang’s paid membership 'Rocket Wow' since April this year. Although the targets differ, both allow users to reduce the menu price by an amount equivalent to the delivery fee. Additionally, Baemin offers the 'Altteul Delivery' service to reduce delivery fee burdens, while Coupang Eats provides the 'Save Delivery' option. These services lower delivery fees through bundled deliveries while maintaining delivery quality. Meanwhile, Yogiyo, which is temporarily stagnant in monthly users but was the first in the industry to launch an unlimited free delivery subscription service, is also attempting a turnaround by offering events such as 10% discount coupons.
The increase in delivery app users is expected to continue. Autumn is a peak season for delivery orders, and at the end of September, the Hangzhou Asian Games and a six-day Chuseok golden holiday are scheduled. In fact, sports events have a significant effect on increasing delivery demand. During the Qatar World Cup last year, on days when the national team played, Baemin’s order volume increased by 37.2% compared to the previous month. The holidays show similar trends. On the substitute holiday for Chuseok last year, Baemin’s orders increased by 28.8% compared to one week earlier. An industry official said, "This Chuseok holiday, many customers are expected to use delivery services during the temporary holidays and National Foundation Day."
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