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Starting on the 26th, Coupang Eats will begin offering an unlimited ‘0 won delivery fee’ service for ‘Wow members’, Coupang’s paid membership.
The service changed from a 10% discount on food prices to free delivery.
According to Coupang Eats on the 25th, there are no restrictions on the number of orders, amount, or distance for free delivery, and discount coupons for each store can also be applied multiple times.
However, this only applies to ‘bundle delivery’, which delivers to multiple homes at once. In the case of a single delivery that only goes to one house at a time, the delivery fee is applied the same as before.
The 0 won delivery fee benefit is available in metropolitan areas such as Seoul and Gyeonggi-do, as well as major cities such as metropolitan cities, Chungcheong, Gangwon, Gyeongsang, Jeolla, and Jeju.
Coupang Eats is the first domestic delivery platform to feature unlimited free delivery. The delivery market, which was growing rapidly during the COVID-19 pandemic, recorded negative growth last year for the first time since statistics were compiled in 2017. This is because, as social distancing was lifted, demand for eating out increased and delivery orders were reduced due to high prices.
In a situation where the high price trend continues, if delivery fees are virtually eliminated, consumers may have a lower threshold for ordering delivery. Coupang Eats, the third-largest company in the industry after Baedal Minjok and Yogiyo, chose to increase its market share even by providing free delivery.
Previously, the ‘10% discount on food prices’ for WoW members was effective in a short period of time, so free delivery has also been verified to some extent in advance. Delivery platform consumers, who have lower loyalty compared to other business groups, have a strong tendency to compare prices across platforms and then place their final order at the place with the lowest price.
Despite the shrinking delivery market, Baedal Minjok is also expected to achieve its highest performance ever last year thanks to this market tendency.
According to the big data analysis platform Mobile Index, the number of monthly active users (MAU) of delivery apps last month was 21.93 million for Baedal Minjok, 6.03 million for Yogiyo, and 5.74 million for Coupang Eats. Even if you add the 2nd and 3rd place MAU, it is half of the 1st place Baedal Minjok.
Even if the market decreases, it is possible to increase profits due to the concentration of users.
Coupang Eats is also aiming to increase Coupang’s WoW membership through free delivery. If you can use Rocket Delivery, video service (OTT) Coupang Play, and free delivery of Coupang Eats for a membership fee of 4,990 won per month, the inflow of paid members is likely to increase.
An industry insider said, “If Coupang Eats’ free delivery becomes established, it is highly likely that competitors will come up with similar services,” adding, “Just as you need to sign up for a WoW membership to receive free delivery, stores will also need to sign up for Coupang Eats’ new rate plan. “New rate plans and services will be launched to compete for market share,” he predicted.
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As of 2024-03-29 11:29
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Maekyung.com Co., Ltd.
190 Toegye-ro, Jung-gu, Seoul
Publication date: 2009.11.30 / Registration date: 2009.11.30
Publisher/Editor: Kim Jeong-wook
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