A Coupang logistics center in Seoul (Image courtesy of Yonhap)
SEOUL, Jul. 2 (Korea Bizwire) – In a move that contrasts with its main competitor, Coupang Eats announced on July 1 that it will continue its policy of waiving packaging fees for all partnered restaurants, reinforcing its commitment to supporting small and medium-sized businesses in the food service industry.
This decision comes as Baedal Minjok (Baemin), South Korea’s leading food delivery app, recently shifted to charging new restaurants a fee for takeout orders. Coupang Eats now stands as the only major delivery app in the country to offer free packaging fees across its entire network of partnered establishments.
“We are expanding opportunities to grow and prosper alongside restaurant owners nationwide,” a Coupang Eats representative stated.
The landscape of South Korea’s food delivery app market is shifting. Baemin, which holds the largest market share, began charging new restaurants a 6.8% commission on takeout orders this month – the same rate applied to delivery orders. For instance, on a 30,000 won takeout order, a restaurant would owe Baemin 2,040 won in fees.
Baemin has, however, granted existing partnered restaurants and those approved by June 30 a grace period until March of next year before the new fee structure applies. The announcement of this policy change prompted concerns among restaurant owners, with many expressing their worries on online communities.
Yogiyo, another major player in the market, currently charges a 12.5% commission on takeout orders.
In addition to maintaining its free packaging fee policy, Coupang Eats also announced the continuation of its free delivery service for Coupang Wow members, the company’s premium membership program. The company reported that within a month of implementing free delivery, partnered small and medium-sized businesses saw a 35% increase in sales. In regions outside the capital area and major cities, sales reportedly doubled.
Coupang Eats introduced free delivery for Wow members on March 26 and expanded it nationwide in May. This strategic move helped the app secure the second position in the food delivery app market for the first time in March.
According to data from app analytics service Wise App, Baemin was first in market share by user count in May at 60%, followed by Coupang Eats at 20% and Yogiyo at 16%.
Ashley Song (ashley@koreabizwire.com)
