Gap with Top-Ranked Baemin Narrows
Surpasses 10 Million Users Last Month
The number of businesses listed on the delivery application Coupang Eats has increased by more than 20,000 in the past six months. During the same period, the number of businesses listed on Baedal Minjok decreased by about 15,000, narrowing the gap. Since securing listed businesses is directly linked to customer experience, Coupang Eats’ upward momentum is expected to continue as it recently surpassed 10 million monthly active users (MAU), rapidly closing in on Baemin.
According to Mobile Index by data company IGAWorks on the 5th, the MAU of the management apps used by businesses listed on Baemin and Coupang Eats?‘Baemin Sajangnim’ and ‘Coupang Eats Sajangnim’?were 308,000 and 217,000 respectively last month. While the number of Baemin-listed businesses increased by only 1.8% compared to the previous month, Coupang Eats saw a 4.3% increase.
The number of businesses listed on Coupang Eats has steadily increased. Six months ago, in July last year, there were about 193,000 businesses. Since then, the number has grown every month, with approximately 24,000 new stores starting to use Coupang Eats over the six months. Coincidentally, this period overlaps with Baemin’s announcement last July to raise its delivery commission rate from 6.8% to 9.8%. Baemin has been slow to recover from the departure of listed businesses that opposed this increase. Compared to about 324,000 businesses listed on Baemin in July last year, the number has decreased by about 15,000.
Considering the fierce competition where differentiation in delivery methods or delivery fees is difficult, the number of listed businesses is regarded as one of the fundamental competitive advantages. In mid-last year, more than 130,000 restaurants were available for delivery on Baemin but not on Coupang Eats; now, that difference has narrowed to about 90,000. This has also driven Coupang Eats’ user acquisition. Last month, Coupang Eats had 10.02 million users, an increase of 4.48 million from 5.53 million in January last year, representing an 81% growth rate. Meanwhile, Baemin’s users last month numbered 22.61 million, increasing by only 160,000 compared to the previous year.
Industry insiders expect that the impact of commission fees on business listings will lessen this year compared to last year, as Baemin and Coupang Eats?the market’s first and second place players?agreed last year to implement a mutually beneficial fee plan under the same commission conditions, and final preparations for its implementation are currently underway. Baemin plans to introduce the mutually beneficial fee plan on the 26th of this month, applying a larger discount rate to small-scale delivery sales businesses, reducing commissions by up to 7.8 percentage points. Coupang Eats is also developing a fee plan under the same commission conditions, aiming to introduce it within March. An industry official said, "With the elimination of commission differences and the cessation of demands for most-favored-nation treatment, other aspects of platform services such as delivery quality and sales contribution will become factors in deciding business listings."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
