'Comeback Imminent' Delivery Market Sees Intense Battle for 2nd Place...

Coupang Eats Users Increase by 45.5% Since Q2 This Year
Yogiyo Stalls... Gap Narrows, 2nd Place Within Reach

Competition for the second place in the delivery platform market is intensifying. While the top spot is firmly held by Baemin (Baedal Minjok), Yogiyo has maintained a strong hold on the second place until now. However, as Yogiyo has recently faltered, Coupang Eats, ranked third in the industry, has made significant strides, narrowing the gap more than ever before. Coupang Eats is accelerating its pursuit, and Yogiyo is mounting an all-out defense.

On the 7th, data company IGAWorks reported, based on Mobile Index data, that last month the number of users (MAU) for Baemin, Yogiyo, and Coupang Eats were 19.43 million, 5.73 million, and 4.33 million respectively. Notably, the gap between second and third place is steadily shrinking, reaching a point where the rankings could change.

Coupang Eats has recorded user growth for seven consecutive months since March this year. Compared to 2.98 million users in March, last month’s users increased by 45.5%. During this period, 1.35 million new users joined. On the other hand, Yogiyo’s users decreased by 14.5% over the same period. As a result, the gap between second and third place, which was 3.73 million in March, has now narrowed to 1.4 million. If this trend continues, there is even speculation that Coupang Eats could overtake second place within the year.

In particular, Coupang Eats’ growth is analyzed to be sustainable because it is based on the competitiveness of the Coupang WOW Membership, rather than a temporary promotional effect. As of the end of last year, the Coupang WOW Membership had 11 million subscribers. Coupang Eats offers these members a 10% discount at designated restaurants. There is still significant potential to expand the user base by targeting the active online shopping segment of WOW Membership members.

Yogiyo is also fully prepared to defend its position. In response to Coupang Eats offering discounts to WOW Membership members, Yogiyo has decided to lower the cost of its free delivery subscription service, 'YogipassX,' from 9,900 KRW to 4,900 KRW per month. This service offers free delivery on orders that meet the minimum amount at stores with the 'YogipassX' badge. This strategy aims to reduce the delivery fee burden, which has been cited as the biggest reason for user churn in the delivery app market, to prevent a reversal in rankings. To broaden its user base, Yogiyo has also partnered with KakaoTalk. Starting from the 21st of this month, Yogiyo will launch 'Order by Yogiyo' to replace the existing KakaoTalk ordering service. This will allow users to access the services and benefits provided by the Yogiyo app directly through KakaoTalk. Discounts on menus, delivery fees, coupons, and more will be offered as before, with orders available from approximately 220,000 stores.

An industry insider said, "Delivery platforms see rapid fluctuations in user numbers as users selectively use services depending on discounts and other factors," adding, "Following the discount competition, service competition to provide differentiated ordering experiences will continue."