"Delivery Alone Isn't Enough... Building Ecosystems Is Essential": Fierce Competition Among Delivery Apps

Samjong KPMG Report Analyzes Food Delivery Market

The domestic food delivery intermediary platform market has been recovering after a period of adjustment following COVID-19, but its growth rate is gradually slowing. Analysts point out that the industry is entering an era of "ecosystem competition"—which goes beyond simple order mediation to include integrated memberships, quick commerce, B2B solutions, and advanced technologies.

On August 4, Samjong KPMG published a report entitled "Food Delivery: From Platform Competition to Ecosystem Expansion." The report analyzes the current status of the domestic and global delivery platform markets, global merger and acquisition (M&A) trends, major trends in the domestic market, and strategic responses by companies.

According to the report, the total transaction value of the domestic delivery platform market last year was 41.5889 trillion won, an increase of 11.8% compared to the previous year. Although the market has continued to grow following the COVID-19 boom, the growth rate has slowed as the industry enters a mature stage.

Nevertheless, with food delivery and takeout usage now established in everyday life, a stable demand base has formed. As the competitive landscape is being reorganized and the regulatory environment is changing simultaneously, the market is rapidly evolving from simple order intermediation to full-fledged ecosystem competition among platforms.

Market Reshaped Around Two Major Players—Baemin and Coupang; Global Market to Reach KRW 2,500 Trillion by 2030

The domestic delivery app market is being reshaped by two main players: Baemin (Baedal Minjok) and Coupang Eats. Coupang Eats is rapidly expanding its market share by leveraging unlimited free delivery and a membership integration strategy, while Yogiyo is seeking to defend its user base through partnerships with external platforms.

Last month, the market entered a new phase when Uber signed an acquisition deal for Delivery Hero, the parent company of Baemin. Baemin is expected to halt its independent sale and remain under Uber's umbrella. Going forward, capital and technology investments from global platforms—as well as the results of regulatory reviews of corporate mergers—are expected to affect the competitive structure of the domestic market.

Major platform companies such as Naver, Danggeun Market, and Toss are also expanding their delivery service offerings not by building their own networks but by integrating with existing delivery apps, offering takeout order services, and collaborating with delivery agencies. These companies are expected to leverage their existing strengths in payment, map, and local services to capture part of the takeout and order mediation markets.

Meanwhile, as disputes over delivery app commissions between platforms and partner businesses continue, regulatory uncertainty is growing. Key developments include the establishment of a dedicated platform task force by the Fair Trade Commission, investigations into demands for most-favored-nation clauses, recommendations for the correction of unfair contract terms, and National Assembly discussions on legislative measures.

According to the report, the global food delivery market has grown from $244.5 billion (about 350 trillion won) in 2017 to $1.3834 trillion last year. The market is projected to reach $1.9553 trillion by 2030.

Major overseas players such as Delivery Hero, DoorDash, Meituan, Uber Eats, and Grab are capitalizing on their domestic market strengths to aggressively pursue international expansion, strategic M&As, and localization strategies. In addition, to offset the low profitability of food delivery, these companies are expanding into related sectors, including quick commerce, reservation services, advertising, restaurant solutions, and fintech—leveraging consumer data and logistics infrastructure.

"Delivery Alone Isn't Enough": Evolution into Ecosystem Competition

The report identifies key business trends in the domestic food delivery market as follows: 1) Lock-in membership strategies, 2) Quick commerce expansion, 3) Business diversification, and 4) Advanced rider management.

First, as competition among delivery apps intensifies and "multi-homing"—where consumers use multiple platforms—spreads, companies are focusing on strengthening membership benefits. There is a growing trend to encourage repeat usage and raise the cost of switching platforms by combining food delivery with daily life services such as grocery shopping, retail, and online video services (OTT).

Quick commerce is also emerging as a new growth driver. Key operators are expanding their product ranges beyond groceries and daily necessities to include beauty, fashion, and stationery, while strengthening partnerships with retailers to increase both user engagement time and purchase frequency. At the same time, domestic on- and offline retailers are stepping up their entry into the quick commerce market to secure new sources of growth.

Delivery platforms are broadening their business scope with B2B (business-to-business) restaurant solutions such as table ordering, while also diversifying their profit bases through overseas expansion. At the same time, in order to secure a reliable delivery workforce, companies are improving compensation by shortening rider payment cycles and increasing incentives, as well as boosting delivery productivity through AI-based dispatch optimization and operational efficiency measures.

Seongjin Min, Executive Director at Samjong KPMG, said, "The challenge for domestic delivery companies now is to move beyond simple market share competition and instead secure platform competitiveness that connects daily life services and builds a sustainable profit structure. Going forward, not only economies of scale but also data, logistics infrastructure, AI-driven operational capabilities, and regulatory adaptability for ecosystem expansion will determine corporate competitiveness."

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