"Could Usage Dip Again When Coupons End?" Public Delivery Apps Consider Point Rewards, Merchant Incentives

Weighing effective support measures to boost public delivery apps
User numbers fell 30% after discount coupons ended last year

The government has decided to diversify its support measures to promote the use of public delivery apps. The move follows criticism that the current measures, which are limited to providing discount coupons to consumers, are not enough to boost usage.

According to the government and industry officials on October 27, the Ministry of SMEs and Startups is exploring various ways to support public delivery apps, based on its recognition of this problem. Specifically, it is considering offering points and discounts to increase usage of public delivery apps. The plan is to introduce point-earning benefits offered by private platforms such as Baedal Minjok and Yogiyo to encourage users to return. The ministry is also pursuing improvements to public delivery apps' mobile services and payment convenience.

Another proposal under discussion is to offer incentives to attract high-quality merchants, including popular local restaurants. The government appears to be looking at examples such as Ttaenggyeoyo, which accepts merchant referrals, awards certification marks to top-performing stores, and waives fees for newly registered merchants. The plan is based on the view that public delivery apps need to attract merchants favored by consumers to ensure their long-term viability.

To make budget support more efficient, the ministry is also working on a plan to designate three or four of the 12 public delivery apps as "shared-growth delivery apps" and focus support on them. There are currently 12 public delivery apps in total: four public-private partnership apps and eight operated by local governments. The public-private partnership apps are Ttaenggyeoyo, Meokgaebi, Wemakepo, and Hwiparam. The local government-run apps are Baedal Teukgeup, Daeguro, Baedal Moa, Jeonju Matbaedal, Baedal Myeongsu, Baedal E-eum, Ulsan Pedal, and Baedal Yangsan. Usage remains extremely low for all but a few platforms.

Public delivery apps have been criticized for a structural problem: their user numbers surge temporarily when discount coupons are offered, then plummet again once the discounts end. According to Mobile Index, a mobile analytics service operated by IGAWorks, users of major public delivery apps such as Ttaenggyeoyo, Meokgaebi, and Baedal Teukgeup fell by more than 30% last month compared with October last year, when users had surged following the distribution of discount coupons. This has prompted repeated calls, including during the previous parliamentary audit, to consider a wider range of support measures rather than spending the 124 billion won budget for next year's shared-growth delivery apps solely on consumer discount coupons.

The Ministry of SMEs and Startups plans to finalize its support measures before budget deliberations begin next month. A ministry official said, "For delivery apps to become competitive in the market, they need to offer services that appeal to consumers and are convenient. We are reviewing various options and will consult with the budget authorities as soon as the support measures are finalized."

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