Food Delivery Apps Battle for Dominance... Orders 'Soar' Even in the Off-Season

Baemin and Coupang Eats added 200,000-400,000 users month over month
Discount competition offset the off-season effect

As competition among food delivery apps over promotions has intensified once again, their monthly active users (MAU) all increased last month. Autumn is typically considered an off-season for delivery orders, as people engage in more outdoor activities such as outings. But the impact of discounts aimed at gaining market leadership offset that seasonal decline. With regulatory uncertainty surrounding food delivery apps growing, each company is actively working to acquire and retain users, and the fierce battle is expected to continue through the end of the year.

According to Mobile Index, a service operated by data platform company IGAWorks, Baemin, Coupang Eats and Yogiyo had 24.29 million, 14.47 million and 3.91 million MAU, respectively, last month. Compared with the previous month, their user numbers rose by 0.9%, 3.2% and 4.5%, respectively.

The increase in users despite October being considered an off-season for delivery is attributed to promotional campaigns launched by leading companies in competition with one another. Baemin's "Time Sale" is a prime example. Baemin began offering Time Sale, which provides discounts for a limited time, in Seoul in April. It gradually expanded the service area before rolling it out nationwide last month. Under Time Sale, customers receive a discount if they place an order within 15 minutes of opening the app. When users open the app, they see participating businesses they have not ordered from in the past three months. The company says the strategy encourages orders from businesses that users are trying for the first time or returning to after a long time, thereby increasing conversion rates. The campaign's effectiveness has been demonstrated as orders through Time Sale rose by nearly 20% from the previous month following the service's expansion.

Coupang Eats, which is chasing Baemin, also recently launched "Gold Box." The service likewise offers discounts for 15 minutes. For Coupang Wow members, it provides an additional discount of KRW 1,000 on orders of at least KRW 20,000, KRW 3,000 on orders of at least KRW 30,000, and KRW 5,000 on orders of at least KRW 40,000. Coupang Eats has agreed to cover the cost of these additional discounts through December.

Coupang Eats also began offering "Stamp Event" last month, a personalized promotional feature that helps participating stores attract regular customers. It brings online the paper coupon stamp system used at offline stores. When users complete five delivery orders from a particular store, they receive a reward, such as a discount coupon or menu item, selected by the store owner. Coupang Eats expects the feature to increase repeat orders.

Yogiyo is also actively expanding its user base through its Yogipass membership subscription service. It offers a rewards program that returns part of the order amount, up to 5%, as points that can be used like cash. In September this year, the proportion of visitors to the Yogiyo app who were subscribers was more than 50% higher than a year earlier. More recently, Yogiyo also ran a promotion offering up to 50% of the purchase amount back in points on signature menu items from major franchise brands.

An industry official said, "Major food delivery apps are actively competing to acquire users and firmly establish their revenue models before regulations are introduced," adding, "Promotions aimed at gaining market leadership are expected to continue through the end of the year."

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