"Annual Delivery Fees Reach Tens of Millions of Won"... Record High for Delivery App Users

Small Orders Surge Amid Free Delivery Competition
Convenience Grows, But Cost Burden Remains

The food delivery market is heating up once again. Last month, major delivery platforms each set new records for their highest-ever monthly active users (MAU). Despite inflationary pressures, the improved accessibility of delivery services is believed to be reshaping consumer lifestyles.

A delivery motorcycle parked. Not related to the article. Photo by Asia Economy Database

According to Mobile Index on September 11, Baemin recorded 23.06 million MAU last month. This marks the second consecutive month that the platform has surpassed 23 million users. Coupang Eats also set a new record with 11.74 million MAU, while the emerging contender, Ttaenggyeoyo, continued its growth with 2.45 million MAU. MAU, which refers to users who visit an app at least once a month, is considered a key indicator of platform engagement.

Sharp Increase in Small Orders, Average Price 4,000 Won Higher Than In-Store

The surge in users can be attributed to the competition for "free delivery." Baemin introduced a new "single bowl free delivery" option by removing the minimum order amount, while Coupang Eats officially launched its "free delivery for even one item" policy. As the burden on single-person households and small-scale orderers has been greatly reduced, the number of people ordering even simple meals through apps has increased rapidly.

Loyalty to delivery apps appears to be low. According to a survey by the Ministry of Science and ICT, 55% of food delivery platform users were "multi-homing" users who used two or more apps simultaneously. Notably, 15% of respondents said they used all three major apps: Baemin, Coupang Eats, and Yogiyo.

Convenience Comes with Growing Cost Burden

A rider delivering food. This is unrelated to the article. Photo by Yonhap News.

However, food delivery is not a "cheap option." According to a survey by the Korea Consumer Agency, ordering one fried chicken and one seasoned chicken through a delivery app costs, on average, about 4,000 won more than purchasing in-store. The addition of delivery fees and platform commissions on top of food prices has increased the financial burden.

Actual spending by celebrities on delivery apps has also drawn attention. Comedian Lee Gukju surprised viewers on a past variety show by revealing, "I spent about 22 million won in a year solely through delivery apps." TV personality Pungja also disclosed, "My annual delivery fees alone exceed 30 million won." Mukbang YouTubers spend even more. YouTuber and broadcaster Tzuyang revealed, "I spent 43 million won in one year on just one delivery app," attracting considerable attention.

Experts point out that while delivery apps have become an essential part of daily life, the burden of delivery fees and commissions could become an obstacle to long-term growth. Whether a balance can be struck between convenience and cost is expected to be a key issue for the future of delivery apps.