"Delivery Fees Are Too Expensive"... Consumers and Owners Choose Here Instead of 'Baemin'

Coupang Eats Closely Chases Baemin

Last month, the number of users of the delivery application Coupang Eats reached an all-time high. While consumer and self-employed business owners' backlash against the dominant delivery app 'Baedal Minjok (Baemin)' has been growing, Coupang Eats appears to be closing the gap rapidly.

[Image source=Getty Images]

According to a survey on delivery app users conducted and announced by app and retail analysis services WiseApp, Retail, and Goods on the 2nd, the number of Coupang Eats users last month was 8.99 million, the highest since the app's launch. Compared to the same month last year, this figure nearly doubled. The growth rate is steep even when comparing market share. Since surpassing Yogiyo in March, Coupang Eats has continuously expanded its market share in the delivery app sector. Coupang Eats' delivery app market share rose to 24%, up 3 percentage points from the previous month. Compared to 14% in the same month last year, it increased by 10 percentage points in one year.

In March, Coupang Eats emerged as a rising power in the delivery app market by launching an 'Unlimited Free Delivery Service' for Wow Membership members. This service offers unlimited benefits without restrictions on the number of orders, order amount, or long-distance deliveries.

On the other hand, both Baedal Minjok and Yogiyo saw a decrease in users compared to the previous month. The number one app in the industry, Baedal Minjok, had 22.54 million users, down 220,000 from 22.76 million the previous month. The third-ranked Yogiyo had 5.26 million monthly users last month, a decrease of 590,000 from 5.85 million the previous month. As the number of users increased for second-ranked Coupang Eats and decreased for third-ranked Yogiyo, the gap between second and third place widened.

Reporter Kang Jin-hyung aymsdream@

According to the big data platform Mobile Index, Baemin has experienced continuous user and franchisee attrition, especially among younger demographics, while Coupang Eats, which has the same commission rate, has seen a relative increase in users and franchisees. This reflects the self-employed business owners' backlash against Baemin.

The Korea Franchise Industry Association reported Woowa Brothers, the operator of Baemin, to the Fair Trade Commission last month. The reason was that they raised delivery fees (commissions) charged to franchisees without justifiable cause by abusing their monopoly position. The association urged the Fair Trade Commission to conduct a strict investigation, stating that franchise stores nationwide are facing closure risks due to high delivery costs and various unfair practices such as preferential treatment of subsidiaries.

This controversy arose because Baemin raised the Baemin delivery fee burden on franchisees from 6.8% to 9.8% last August and allegedly required that food prices be set lower on competing delivery apps compared to their own app, along with preferential treatment on the delivery app screen.