"No Price Burden, I Love It": Solo Diners Flock to Baemin as Hangureut Service Becomes a Hit

Baemin's "Hangureut" Service Drives 1.37 Million User Increase Targeting Single-Person Households
Ttaenggyeoyo Surges with "Livelihood Recovery Consumption Coupon"

The "Hangureut" service, launched by Baemin (Baedal Minjok) targeting single-person households, is showing remarkable results in the market. Despite various strategies to expand its user base, Baemin had previously struggled to fend off the strong pursuit of the second-ranked Coupang Eats. However, as this service gained popularity nationwide, Baemin saw a significant increase in users last month. While Baemin and Coupang Eats continue to dominate as the two leading platforms, variables such as the growing presence of the public delivery app "Ttaenggyeoyo" through various promotions are making the mid-tier market landscape increasingly unpredictable.

A woman eating alone. Photo by Getty Images Bank

According to Mobile Index, a data platform operated by IGAWorks, on August 6, last month Baemin, Coupang Eats, and Yogiyo recorded 23.13 million, 11.46 million, and 4.88 million monthly active users (MAU), respectively. Compared to the previous month, Baemin's user base increased by approximately 840,000. Coupang Eats and Yogiyo saw increases of 210,000 and 170,000 users, respectively. This means Baemin attracted the largest number of new users in a single month. In terms of month-on-month growth rate, Baemin also led with 3.8%, outpacing both the second and third place competitors.

The main factor behind Baemin's notable user growth last month, after maintaining around 22 million users for a year with only minor fluctuations, is "Hangureut." This service, targeting the increasing number of single-person households, eliminated the minimum order amount, allowing users to order just one serving without adding extra menu items and simplifying the ordering process for greater convenience. Baemin introduced the Hangureut category at the end of April, initially launching in Seoul and then gradually expanding nationwide. The popularity of Hangureut is evident in the 1.37 million user increase for Baemin from April to last month. Baemin also reported that, compared to June when nationwide expansion began, Hangureut orders in July increased by about 94%. During the same period, the number of menu items registered under Hangureut also grew by approximately 150%, with participating restaurant owners actively expanding their Hangureut offerings.

Although Coupang Eats, which has been checking Baemin's dominance, continues to gain users, its growth rate has somewhat slowed. After surpassing the 10 million user mark in January this year, Coupang Eats added 1.44 million users over the next six months. Compared to the same period last year, the user base grew by 3.85 million, marking a 50.6% growth rate. However, on a month-on-month basis, last month's growth was 1.9%, which is a noticeable decrease compared to the 9.5% recorded in December last year.

Another notable market change is the growth of the public delivery app "Ttaenggyeoyo." Last month, Ttaenggyeoyo recorded 2.39 million users, a 45.7% increase from the previous month. While the month-on-month growth rate was in the 10% range in June, the sudden spike last month is attributed to local government promotions and the "Livelihood Recovery Consumption Coupon" effect. To use consumption coupons on delivery apps, users must utilize "on-site payment," but Ttaenggyeoyo supports local currency payments, allowing users to use the coupons for both in-app and on-site payments. An industry insider commented, "Ttaenggyeoyo's low 2% commission fee is a clear advantage for participating merchants, but it has lacked incentives for consumers. The consumption coupon has addressed this, and depending on how well Ttaenggyeoyo retains the newly acquired users, it could significantly impact the market landscape."