Coupang Eats vs. Baedal Minjok: Round 2 of the "Free Delivery War"

Coupang Eats Temporarily Expands Free Delivery to Regular Users
Baedal Minjok Launches Free Delivery Promotions for Non-Members
Fierce Competition of 2024 Resurfaces in the Market

The competition for free delivery has reignited in the delivery application market. The first- and second-ranked companies have both unveiled plans to expand their free delivery offerings. Until now, free delivery was only available to paid members, but this time, it is being offered to non-members as part of promotional campaigns, signaling intensified competition ahead.

According to industry sources on May 25, Baedal Minjok is currently running a free trial event for its Baemin Club. Baemin Club is Baedal Minjok's paid subscription program, which primarily offers unlimited free delivery fees as one of its major benefits. The key change is that this paid subscription service is now available for a one-month free trial, expanding free delivery benefits to regular members who have not subscribed to Baemin Club.

Industry observers suggest that Baedal Minjok's strategy is not unrelated to the ongoing sale process. One industry insider commented, "With competition in the delivery app market intensifying due to initiatives such as Coupang Eats' expansion of free delivery, Baedal Minjok likely felt the need to increase Baemin Club subscribers to boost its corporate value."

delivery motorcycle

As the leading companies in the market expand free delivery benefits one after another, the competitive landscape has become even more entrenched. On May 21, Coupang Eats also announced that it would temporarily extend its free delivery benefit, previously available only to WOW members, to all regular users until August. Coupang Eats explained that it would fully cover the delivery fees that customers used to pay in order to stimulate consumption. However, some see this as a bold move to overcome the stagnation in user growth.

The reason these temporary promotions and free delivery events cannot be dismissed is because of their significant past impact on the market. In 2024, Coupang Eats, as a latecomer, was the first to introduce free delivery to the domestic market, rapidly increasing its user base and quickly securing the second position in the market. Its monthly active users (MAU) jumped by 65.8% in just one year. Even Baedal Minjok, the leader that had previously maintained a comfortable lead, was compelled to adopt the free delivery model in response to Coupang Eats' momentum. An industry insider noted, "With overall growth in the delivery app market slowing, the expansion of free delivery could result in a costly battle, with companies fighting to poach users from each other."

Controversy over side effects is also expected to intensify. Organizations representing merchants, including the Korea Federation of Micro Enterprises, immediately protested, stating, "The free delivery competition, which began with Coupang Eats and spread throughout the industry, has ultimately shifted costs to small business owners, resulting in higher dining and delivery prices." In response, Coupang Eats cited internal data, claiming that the per-order fee burden for partner merchants decreased by about 5% in the year before and after the launch of free delivery. The company also asserted that, during the same period, sales per merchant increased by 98%.

This content was produced with the assistance of AI translation services.