More Users Despite the Off-Season... Inside the Fierce Competition Among Delivery Platforms

Baemin and Coupang, the Top Two in the Industry
Compete Over Free Delivery Promotions

The expansion of Coupang Eats' "free delivery" service has reignited competition among delivery application (app) promotions. Even in May, when delivery demand typically declines, the number of users increased. With Baemin currently up for sale, the need to expand its user base to boost corporate value is expected to intensify the competition going forward.

According to Mobile Index, a mobile data platform by IGAWorks, as of last month, the monthly active users (MAU) of Baemin, Coupang Eats, and Yogiyo were 24.51 million, 13.52 million, and 4.19 million, respectively. Compared to the previous month, the number of users for Baemin and Coupang Eats increased by 4.7% and 2.7%, respectively, while Yogiyo saw a slight decrease. May is typically an off-season for delivery services due to increased outdoor activities, but the increase in users for the leading companies is interpreted as the result of aggressive promotions.

The main driver of this renewed competition was the "free delivery" offer. Last month, Coupang Eats took a bold step by expanding free delivery—previously available only to paid Coupang WOW members—to regular members for three months. Around the same time, Baemin also ran a promotion allowing users to try out Baemin Club, its subscription product that provides free delivery, for free for one month. As a result, users of both platforms were able to place delivery orders for free even without a paid membership. Industry insiders explain that such aggressive strategies fueled the increase in users.

Trends in weekly active users (WAU) also support this explanation. Baemin and Coupang Eats both saw minor fluctuations until the third week of May, which included the 21st—the date when Coupang Eats began expanding its free delivery offer. Afterward, user numbers started to climb. Comparing WAU from mid-May (before the expansion) to the final week of the month, Baemin's WAU increased by 6.5% and Coupang Eats' by 4.0%.

The industry also believes that these developments are related to the ongoing sale of Baemin, the market leader. Baemin has recently introduced several new strategies to expand its user base. The "time sale," which offers discounts for a limited time, is a prime example. The platform is also encouraging orders from first-time or long-absent customers to boost conversion rates. In addition, Baemin is continually expanding exclusive menu offerings in partnership with restaurant franchise brands. The need to manage indicators that directly impact platform company value—such as user count and payment volume—appears to be reflected in these strategies.

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