Baemin's 'Close Pursuit' Coupang Eats Solidifies Two-Strong System

Coupang Eats Surpasses 10 Million Monthly Users in March
User Base Grows by Over 4 Million in One Year

Coupang Eats is fiercely chasing Baedal Minjok, solidifying a 'duopoly' in the delivery app market. This follows Coupang Eats surpassing 10 million monthly users in January this year and continuing to grow. While Baemin remained stagnant for a year, Coupang Eats' user base increased by more than 4 million, narrowing the gap between them. If this growth trend continues, Coupang Eats is expected to soon catch up to Baemin, which has maintained an overwhelming lead. Baemin has begun active defense efforts, including investments to strengthen its takeout services.

According to Mobile Index by data platform company IGAWorks on the 4th, last month Baemin, Coupang Eats, and Yogiyo recorded monthly active users (MAU) of 22.21 million, 10.37 million, and 5.13 million respectively. Compared to the same period last year, Baemin saw a slight increase, while Yogiyo decreased by about 570,000 users. The standout is Coupang Eats' growth. Coupang Eats increased by a whopping 4.11 million users over one year, representing a 65.8% growth in user size.

The driving force behind Coupang Eats' growth over the past year has been 'free delivery.' Starting from the end of March last year, Coupang Eats began offering free delivery services to Coupang's paid membership Wow members, accelerating user growth. Considering the number of Wow membership subscribers, Coupang Eats still has room to expand its user base. As of the end of 2023, Wow membership exceeded 14 million. Although no further figures have been disclosed, the industry evaluates that the number continues to grow.

Moreover, from April, Coupang Eats implemented a win-win fee plan with the same rate as Baemin. This reduced commissions by up to 2 to 7.8% compared to before. Additionally, the 'no brokerage fee' policy for takeout order services for all partnered stores was extended for one year. As a result, the number of partnered stores increased to about 227,000 last month. The difference with Baemin, which has the most partnered stores in the industry at about 307,000, is now only about 80,000.

Baemin also perceives Coupang Eats' rapid growth as a threat. Kim Beom-seok, CEO of Woowa Brothers, said in a company-wide announcement last month, "This is the most dangerous and difficult moment, and we must reorganize and prepare thoroughly to run toward the top," reflecting the current market situation. Baemin internally declared 'Baemin 2.0,' aiming to enhance delivery service competitiveness in four areas: customers, experience, technology, and service.

The first strategy to pursue new growth is to activate takeout orders. Rebranded as 'Pickup,' takeout eliminates delivery fees, improving profitability for store owners as its share increases, and since customers visit the store directly, it offers a positive purchasing experience that facilitates securing regular customers. Customers can also check the store's condition in person and receive discount benefits. To this end, Baemin has started a marketing promotion investment worth about 30 billion KRW. An industry insider said, "In the delivery app market, differentiating services solely through food delivery is becoming increasingly difficult. Competition will unfold to provide different customer experiences through service rather than price."