The long-standing market leader, Baemin, has seen its market share dip below 60% for the first time in two years. (Image courtesy of Yonhap)
SEOUL, Sept. 4 (Korea Bizwire) – In a significant shift within South Korea’s fiercely competitive food delivery app market, the long-standing market leader, Baemin, has seen its market share dip below 60% for the first time in two years.
This change comes as rival Coupang Eats gains ground, capitalizing on the prolonged free delivery competition that has become a hallmark of the industry.
According to data released on September 3 by data analysis service Wise App, Coupang Eats captured 22.7% of the market share last month among major delivery apps, including Baemin, Yogiyo, Ddangyo, and Baedal Teukgeup.
Coupang Eats has shown remarkable growth since introducing free delivery for Coupang Wow members in April. Its market share, which had hovered around 10% until May of last year, has more than doubled and continues to climb steadily.
In contrast, Baemin’s market dominance has been eroding. After surpassing 60% market share for the first time in September 2022 and maintaining a 61-62% share, Baemin began to show signs of decline in April (60.5%) and May (60%) of this year.
In June, its share fell to 59.2%, dropping below 60% for the first time in two years. Despite a slight rebound to 59.4% in July, August saw another decline to 58.7%.
Yogiyo, which conceded its second-place position to Coupang Eats in March after struggling to keep pace with the costly competition, has seen its market share steadily decrease since June of last year, recording 15.1% last month.
The company recently implemented its first-ever voluntary retirement program, underscoring the crisis it faces.
While Baemin and Coupang Eats saw increases in their monthly active users, Yogiyo experienced a decline. Baemin reached a record high of 22.76 million users last month, an increase of 250,000 from the previous month. Coupang Eats also hit a record with 8.79 million users, up by 690,000.
The gap in user numbers between Baemin and Coupang Eats narrowed by 3.1% compared to the previous month, now standing at 13.97 million.
Yogiyo’s monthly users decreased by 40,000 to 5.85 million, while Ddangyo saw a drop of 40,000 to 970,000 users. Baedal Teukgeup maintained its user base at 380,000.
An industry insider commented, “Coupang Eats’ aggressive marketing strategies, including a 10% permanent discount and free delivery services, have contributed to its improved user numbers and market share since mid-last year.
This growth trend is expected to continue for the time being.”
The delivery app market has recently become a battleground for subscription services offering free delivery benefits. Coupang Eats provides free bundled delivery nationwide to Coupang Wow members, who pay a subscription fee of 7,890 won.
Baemin has introduced Baemin Club, offering free delivery on budget orders and discounted delivery fees for single-address orders, currently available at a promotional rate of 1,990 won until November 11.
Yogiyo, which pioneered the free delivery membership model, operates the Yogi Pass X subscription service, recently reducing its monthly fee from 4,900 won to 2,900 won in April.
Ashley Song (ashley@koreabizwire.com)
