A delivery worker is waiting to pick up take-out food in central Seoul on Feb. 21, 2023. (Yonhap)
SEOUL, Feb. 28 (Korea Bizwire) — South Korea’s online food delivery market, which saw major growth during the pandemic, had a major reversal of fortunes last year, data showed Monday.
According to data from Statistics Korea, last year’s online transactions for food delivery services stood at 26 trillion won, (US$19.6 billion) down by 1.4 percent from the previous year.
The increase rate plunged from 78.1 percent in 2020 and 48.1 percent in 2021.
Seen monthly, transactions first shrank in July by 5.3 percent, and continued to decrease for the next six consecutive months.
The number of food delivery app users, too, is declining.
The three major food delivery apps — Baemin, Yogiyo and Coupang Eats — were used by 30.2 million people last month, down 16.6 percent from the previous year, according to data by local market analysis firm IGA Works.
The number of users has been declining since last May.
The declining use of food delivery apps is largely attributed to an increase in socializing after social distancing measures were lifted, during which demand shifted to restaurants and other dining establishments.
High food delivery costs are also discouraging the use of food delivery apps.
The Korea National Council of Consumer Organizations compared last month’s delivery fees among food restaurants in Seoul with November last year, which showed that 13.5 percent saw their delivery fees rise, which was more than double the number of restaurants which saw their delivery fees decline (5.8 percent).
M. H. Lee (mhlee@koreabizwire.com)
