Baemin and Coupang Go All-In for Peak Season Dominance Amid Regulatory Concerns

Last Month: Baemin Reaches 24.33 Million,
Coupang Eats Hits 13.72 Million MAU

All-Out Battle as Both Expand Late-Night Delivery Hours

The competition to secure market dominance in the delivery app sector is intensifying ahead of stricter regulations. This is due to the increased likelihood of regulatory actions in the delivery market, especially after the Korea Fair Trade Commission rejected the request to initiate consent decree procedures for Baemin and Coupang Eats. Baemin and Coupang Eats, the top two players, have clashed by expanding their free delivery offerings and now extending their rivalry into late-night delivery hours.

According to Mobile Index, the mobile analytics service of data platform company IGAWorks, on July 7, the number of monthly active users (MAU) for Baemin, Coupang Eats, and Yogiyo last month stood at 24.33 million, 13.72 million, and 4.05 million, respectively. Compared to the previous month, Baemin saw a 0.7% decrease, while Coupang Eats experienced a 1.7% increase. Yogiyo continued its downward trend with a 3.5% decline. Additionally, Ttaenggyoyo recorded 2.19 million users, continuing a downward curve for six consecutive months since January this year.

The increase in Coupang Eats' user numbers is analyzed as the result of its expanded free delivery promotion, which began at the end of May. Coupang Eats made a bold move by extending free delivery—previously limited to its paid Coupang Wow members—to general members for three months. In response, Baemin offered a free trial of its subscription-based Baemin Club, which also provides free delivery. As a result, in the first month, Coupang Eats saw a net increase of nearly 200,000 users. Coupang Eats' free delivery promotion will continue until August. The company’s strategy appears to be securing as many users as possible during the summer, considered the peak season for delivery, to lay the groundwork for catching up with its rival.

Another factor that could influence the summer delivery market landscape is 'late-night delivery.' Both companies are expanding their delivery hours to target demand in the early morning. Since June 22, Baemin has extended its delivery operation time by two hours. Previously, deliveries were available from 6 a.m. to 3 a.m. the next day, but now they operate until 5 a.m., enabling 23-hour delivery. Initially, this service is available in Seoul, Gyeonggi, Daegu, Busan, Incheon, and Gwangju, with plans to expand nationwide. Similarly, Coupang Eats expanded its 24-hour delivery service—which was previously limited to the Seoul metropolitan area and some major cities—to a nationwide scale starting June 24.

The expansion of both free delivery promotions and delivery time slots by Baemin and Coupang Eats aligns with the trend of tightening regulations around delivery apps, such as potential fines from the Fair Trade Commission and the proposed cap on commission fees being discussed in the political sphere. If such regulations are implemented, they could lead to reduced profitability and increased delivery costs. An industry insider remarked, "The current sentiment in the market is that it is crucial to solidify the user base and revenue structure before new regulations take effect," adding, "The competition to secure dominance in the pivotal summer market will become even fiercer."

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