"1 in 3 People Quit"…20s Turn Away from Delivery Apps Amid High Inflation

Baemin Users Hit Lowest Since March 2021
Top 3 Delivery Companies Launch Up to 10% Year-End Discounts

As the prolonged high inflation worsens the financial situation of young people, demand for delivery apps is sharply declining.

According to the big data platform Mobile Index, the monthly active users (iOS + Android) of 'Baedal Minjok' have fallen for three consecutive months, recording 18,988,926 users. This is the lowest since March 2021.

A motorcycle delivery worker is waiting for delivery calls early in the morning in downtown Seoul.
[Photo by Jinhyung Kang aymsdream@]

Yogiyo and Coupang Eats are in an even worse situation. Yogiyo users have dropped to 5.7 million, cutting their user base in half compared to two years ago, and Coupang Eats recorded 4.6 million users, which is only 65% of the peak 7.02 million users in December 2021.

The main users of the delivery app market are people in their 20s and 30s, and it seems that their reduced usage has impacted the market. Baedal Minjok's users in their 20s once reached 8 million but have now decreased to the mid-6 million range, while users in their 30s have fallen from the low to mid-5 million range to the high 4 million range.

Yogiyo's users in their 20s have decreased by more than 30%, from the 3 million range to the 2 million range.

In the past, delivery demand increased during the year-end when colder weather discouraged outdoor activities, but this winter presents a very different atmosphere. Delivery apps are running various discount events to retain customers.

Baedal Minjok is holding the 'Ooo Discount Festival' until the end of this year, offering benefits such as a 5% discount and 5,000 won coupons. Yogiyo provides discount coupons of up to 2,000 won for orders over 15,000 won. Coupang Eats has been offering 'Wow Membership' since April this year, charging 4,990 won per month and giving an immediate 5-10% discount on food prices for every order.

Despite these efforts, the restaurant industry’s outlook is not good. According to Statistics Korea and the Ministry of Agriculture, Food and Rural Affairs, the dining industry business index recorded 86.91 in the first quarter and has continued to decline through the second and third quarters. The business outlook index for the dining industry is expected to worsen further in the fourth quarter compared to the third quarter.

According to Mobile Index by big data company IGAWorks, the combined monthly active users (MAU) of the three delivery apps (Baemin, Yogiyo, Coupang Eats) last month was 29,286,60, a 2.5% (748,461 users) decrease compared to the same period last year. Compared to the previous month (29,496,304 users), it decreased by 209,704 users (0.7%).