After Free Delivery... Coupang Eats Steps Up Service Competitiveness

Free Delivery for Standard Members Ended Last Month
New Services Introduced, Including Stamp Rewards and Delivery Time Guarantee

Coupang Eats has been rolling out a series of new services aimed at retaining users acquired through its expanded free delivery initiative. The company has primarily focused on strategies with lock-in effects, such as stamp rewards and delivery time guarantees, to prevent customer churn. This approach also reflects Coupang Eats' assessment that strengthening its service competitiveness is crucial, especially following Uber's acquisition of Delivery Hero and its active operation of Baemin, given the shifting dynamics of the domestic market.

According to Coupang Eats, the free delivery promotion for standard members ended on August 31. At the end of May, Coupang Eats had expanded free delivery, previously reserved only for paying Coupang WOW members, to all standard members. Free delivery was a strategy first introduced by Coupang Eats to the Korean market in 2024, rapidly elevating the platform to the number two spot in the sector. The recent three-month promotion reportedly yielded significant results. According to the application and payment data analysis solution WiseApp, Coupang Eats hit record highs in both its estimated payment volume and app user numbers in July. The service now boasts nearly 14 million monthly users.

Following the end of the free delivery promotion, Coupang Eats is focusing on minimizing user churn and enhancing competitiveness to respond to future market changes. One prime example is the new stamp reward program, which began pilot operation in select areas of Seoul and Gyeonggi Province. When users place an order at participating stores, they earn stamps; after five orders, they automatically receive a discount coupon or menu ticket. Since users must continue ordering from the same store to accumulate stamps or use rewards, this is expected to enhance lock-in effects and drive higher sales for partner restaurants.

Coupang Eats also began pilot operation of a delivery time guarantee coupon service for WOW members in select regions, including Gwangju, at the end of last month. For orders eligible for this service, Coupang Eats provides a specific guaranteed delivery time and offers a coupon if the delivery arrives late. In these pilot areas, customers can receive up to KRW 5,000 in coupons, depending on the delay. All costs for this service are fully covered by Coupang Eats. While this service was also piloted in 2024, the company did not expand it into a formal offering, as it focused on free delivery initiatives at the time. Coupang Eats has now reintroduced this feature to enhance competitiveness by providing a reliable delivery experience.

Since August 24, Coupang Eats has also piloted the "Popular Restaurants in Neighboring Districts" service in certain regions, such as Busan. Previously, even if a popular restaurant was located nearby, customers could not order if it was outside the standard delivery radius. This new service allows customers to place orders from these restaurants by simply paying an additional distance-based delivery fee. Partner restaurants can thus reach a larger customer base with no extra burden. The service area will be gradually expanded. Additionally, the "Queue-Worthy Restaurants" pilot, which began in Daegu during the first quarter, has received positive feedback by highlighting renowned local eateries and has since expanded nationwide.

An industry insider commented, "With Uber—a dominant player in the global food delivery market—entering Korea with its massive capital, advanced technology, and extensive data and operational expertise, the competitive landscape will be entirely different compared to when Delivery Hero was operating Baemin. We can expect ongoing and varied efforts to strengthen service competitiveness going forward."

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