Delivery Wars Heat Up as Kyochon Aligns With Baemin, Snubs Coupang Eats (Image supported by ChatGPT)
SEOUL, June 25 (Korea Bizwire) — Kyochon Chicken, South Korea’s third-largest fried chicken franchise, will withdraw from delivery app Coupang Eats starting next month as part of an exclusive partnership with market leader Baedal Minjok (Baemin).
The move marks the industry’s first known case of a delivery platform offering preferential terms in exchange for app exclusivity and may signal the beginning of a broader franchise acquisition war among top delivery services.
Kyochon Chicken, South Korea’s third-largest fried chicken franchise (Yonhap)
According to industry sources on Wednesday, Baemin operator Woowa Brothers and Kyochon F&B are set to finalize a memorandum of understanding under which Kyochon will delist from Coupang Eats in return for reduced commission fees for its franchisees.
The agreement allows Kyochon to continue operating on other platforms, including Yogiyo, the public delivery app “Ttaenggyeoyo,” and its own app.
Currently, franchisees on both Baemin and Coupang Eats pay up to 7.8% in intermediary fees if they fall within the top 35% in sales. Under the new deal, Kyochon franchisees can choose to delist from Coupang Eats to access fee reductions or remain on both platforms without the discount. Most of Kyochon’s 1,300 franchisees have reportedly agreed to the terms.
The agreement is expected to take effect in July and will remain in place for two to three years. Although the exact discount rate has not been disclosed, sources suggest it is “significant enough” to justify mass withdrawal from Coupang Eats.
Delivery motorcycles are lined up and parked at ‘DeliveryN’, a subsidiary of Woowa Youths. (Yonhap)
This is the first time a delivery app has tied lower commission fees to platform exclusivity, indicating a strategic shift by Baemin to solidify its lead against fast-rising rival Coupang Eats.
Kyochon, though no longer the top chicken brand by market share, remains a key player with strong sales—posting KRW 124.6 billion ($90 million) in Q1 2024, a 10% year-over-year increase.
Mobile app data supports the fierce competition: as of April, Coupang Eats had 10.44 million monthly active users (MAU), nearly double its 5.53 million MAU from January 2023. In contrast, Baemin’s MAU slightly declined from 21.74 million to 21.75 million over the same period.
Experts say this deal could usher in a new era of exclusive franchise partnerships among delivery platforms. “Landing exclusive deals with popular brands could become a critical strategy for platforms seeking to win over users,” said a delivery industry official. “Expect more aggressive competition for major franchises with national reach and guaranteed revenue.”
Ajou University business professor Lee Jong-woo added, “From a franchisee perspective, lower commission fees are a clear benefit. But Coupang Eats is likely to respond with its own countermeasures, which will only intensify the competition.”
Ashley Song (ashley@koreabizwire.com)
