Delivery 'Subscription Service' Competition Heats Up... Baemin Faces Growing Concerns Amid Rival Pursuit

Baemin and Coupang Eats MAU at 21.85 Million and 6.98 Million Respectively
Baemin Launches Subscription Service 'Baemin Club' Last Month
Baemin Club Must Compete with Coupang Wow Benefits

Recently, the spark of competition over 'free delivery' that had been shaking up the delivery application (app) market has shifted to a battle over subscription services. This shift began when Baemin, the market leader, officially launched its subscription service 'Baemin Club' at the end of last month. Coupang Eats is continuing its offensive by expanding its free delivery service nationwide, making it essential for Baemin to adopt a strategy of retaining customers through membership. However, Baemin faces a deep dilemma over what benefits to include in its subscription product, as it must compete with the subscription perks of Coupang Wow, which has driven 14 consecutive months of user growth for Coupang Eats.

A delivery motorcycle running on a street in Seoul. Photo by Jinhyung Kang aymsdream@

On the 4th, data company IGAWorks reported, based on Mobile Index data, that last month the monthly active users (MAU) of Baemin, Coupang Eats, and Yogiyo were 21.85 million, 6.98 million, and 5.59 million respectively. Compared to the previous month, all showed slight increases: Baemin up 0.5%, Coupang Eats up 2.0%, and Yogiyo up 1.6%. This is interpreted as the result of aggressive marketing by the three companies last month surrounding free delivery and other promotions.

Notably, the growth momentum of Coupang Eats, which had been increasing users by offering discounts and free delivery to Wow members and igniting competition, has somewhat slowed. Since launching its free delivery service this year, users had been rising sharply by nearly 10% each month, but last month growth was limited to 2%. An industry insider explained, "Factors both internal and external, such as the increase in Wow membership fees and the launch of Baemin’s subscription service as the market leader, likely influenced this."

The industry views the current market situation as a prelude to the full-scale subscription competition. Although Baemin started operating 'Baemin Club' on the 28th of last month, it is still in the free trial period, so consumers have not yet felt significant changes. Currently, at stores marked with Baemin Club, customers automatically receive free delivery for bundled orders (Alteul Delivery) and discounted delivery fees for single-household deliveries without any separate sign-up or procedures. The service area is also limited to major metropolitan cities including Seoul, Gyeonggi, Incheon, and Sejong City.

Baemin has not yet set subscription fees or an end date for the trial period. It is currently reviewing what benefits to include beyond free delivery. Initially, benefits are expected to include those available through its own commerce operations such as B Mart and Baemin Store. The industry also anticipates additional perks through partnerships with other companies. Considering that Coupang Wow membership remains competitive in the market despite fee increases, Baemin is in a position where it must offer groundbreaking services in terms of price and benefits.

Regarding the subscription service that Baemin must effectively compete against, Coupang provided benefits worth about 4 trillion won last year and plans to expand this investment to over 5.5 trillion won this year. An industry insider said, "Baemin’s subscription product must compete not with Coupang Eats but with Coupang itself," adding, "How Baemin decides on subscription fees and benefits currently under review could influence the market landscape."