Service Expansion Driven by 69% Increase in Sales
Seoul's public delivery service, "Seoul Delivery+Ttaenggyeoyo," will pilot its own delivery service. The city plans to offer consumers benefits such as coupons and discounts, while also reducing commission burdens for affiliated store owners.
On June 30, the city announced that it will introduce Ttaenggyeoyo's in-house delivery service, "Ttaeng Delivery," as a pilot program in Jung-gu starting July 30.
Ttaeng Delivery is a system in which the delivery app operator manages the entire process?integrating consumers, affiliated stores, and delivery?from rapid rider matching and real-time delivery route updates to food handover. The operator, Shinhan Bank, is partnering with the delivery agency Barogo for this service.
With the introduction of Ttaeng Delivery, consumers will only need to pay between 0 and 900 won for delivery. If an order is placed at a Shinhan Bank-affiliated store and paid for via a Shinhan Bank account, the delivery fee is waived. Unlike private delivery apps, there is no need to pay a subscription fee.
Additional benefits can also be applied, including district-specific delivery gift certificates (with a 15% upfront discount) and the Ministry of Agriculture, Food and Rural Affairs' public delivery app activation consumer coupon (providing a 10,000 won reward for three orders of 20,000 won or more), which has been available since June 10.
The service will also offer features on par with private delivery apps, such as real-time rider location tracking and delivery completion photos for contactless deliveries. Through these features, the city aims to reduce delivery delays and order cancellation rates, thereby increasing customer satisfaction.
The burden on store owners will also be reduced. There is a fixed delivery fee of 3,300 won per order with no additional surcharges, and riders are matched automatically without the need to call a separate delivery agency. The service can also be operated alongside existing in-house delivery. Stores wishing to join Ttaenggyeoyo can apply online via the "Ttaenggyeoyo Owner Lounge" website.
Ttaenggyeoyo's performance has been improving. From January to May this year, cumulative sales reached 25 billion won, a 69% increase compared to the same period last year. As of May, the number of affiliated stores stood at 46,760, up by 2,960 from December last year. Monthly active users (MAU) also rose from 4.2 million to 5 million.
Han Jeonghun, head of Seoul’s Small Business Policy Division, stated, "With the introduction of Ttaeng Delivery, we expect public delivery apps to achieve competitiveness in both delivery quality and price, which could allow them to play a disruptive role in the monopolistic delivery app market."
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