Full Waiver of Brokerage Fees Upon Entry
Surge in Order Volume and Sales for Small and Medium Merchants
Coupang Eats Also Continues User Growth
Kim Kyung-nam, who runs a chicken restaurant in Geumnam Market, Seongdong-gu, Seoul, joined Coupang Eats this year. Having operated in Geumnam Market for over 20 years and becoming known as a local favorite, he faced difficulties with the increasing number of online orders and having to deliver them himself. After joining Coupang Eats, Kim sells chicken only through delivery and takeout. He says orders never stop, so he doesn't need to operate a dine-in service. Kim said, "It was tough managing everything when I delivered myself, but after joining Coupang Eats, my worries disappeared," adding, "There are so many Coupang Eats orders that I don't need to use other delivery apps." In fact, after joining Coupang Eats, the monthly order volume at Kim's chicken restaurant reportedly increased by 29% year-on-year, and sales rose by 43%.
Kim Kyung-nam, who runs a chicken restaurant in Geumnam Market, Seongdong-gu, Seoul. Since joining Coupang Eats, sales have increased by 43% compared to the same period last year. [Photo by Coupang]
Coupang Eats, a food delivery service operated by Coupang, is pursuing mutual growth with small and medium-sized merchants in traditional markets. Alley restaurants within traditional markets, known as hidden gems, have seen sales growth after joining Coupang Eats, while Coupang Eats is establishing its own position in the industry, which is dominated by 'Baedal Minjok' and 'Yogiyo,' through coexistence with small merchants.
According to industry sources on the 12th, Coupang Eats waives all brokerage fees for alley restaurants in traditional markets nationwide upon joining. For Coupang's paid Wow membership users, it offers up to a 10% discount (Wow discount), which has significantly increased the number of orders for alley restaurants in traditional markets that have joined. Coupang stated, "Since the COVID-19 pandemic, we have supported the online expansion of about 1,600 stores across 135 traditional markets nationwide, helping small merchants transition digitally."
Lee Kyu-ho, who runs a cold noodle restaurant in Geumnam Market, is another example benefiting from Coupang Eats. He inherited the family business started by his mother in 1966 and gained fame centered around Geumnam Market, but faced a crisis as visitors decreased after COVID-19. However, by entrusting delivery to Coupang Eats and adding the Wow discount, his sales reportedly jumped 61% compared to the same period last year.
Coupang Eats' partnership with small and medium-sized merchants in traditional markets began in earnest in 2020. Through the 'Traditional Market Revitalization Program,' it has supported small merchants' digital transformation and securing online sales channels. As a result, alley restaurants in traditional markets that digitally transformed by joining Coupang Eats in the first half of this year saw sales increase by 20% compared to the previous year.
Coupang Eats itself has shown remarkable growth through coexistence with small merchants. The number of users was only 2.84 million in December 2020 but soared to 7.02 million the following year. Although delivery app users decreased after the endemic last year, the number rose again to 4.25 million as of last month this year. This contrasts with other companies in the industry, which continue to see a decline in users this year.
A Coupang Eats representative said, "Coupang Eats' support for traditional markets, started to overcome difficulties caused by COVID-19, has led to merchants' digital transformation and increased online orders from customers, creating a virtuous cycle of coexistence," adding, "We will promote coexistence through various supports so that small and medium-sized merchants in traditional markets can gain more opportunities and growth momentum in the future."
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