A Free Delivery Service Competition
A Free Delivery Service Competition
  • Jeong Hee-yeon
  • 승인 2024.05.29 19:01
  • 댓글 0
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 ‘Coupang Eats’ started offering unlimited free delivery for Coupang’s paid membership, ‘Wow Members,’ on March 26th. Following suit, other delivery apps such as ‘Baemin’ and ‘Yogiyo’ also declared free delivery services.
  Coupang Eats launched a service called ‘Unlimited Free Delivery’ targeting ‘Coupang Wow Members’ from March 26th to relieve the burden of delivery fees. Baemin introduced a free bundled delivery service in the capital area regardless of membership. Yogiyo introduced a service offering a 4,000 won coupon to subscribers of their subscription service, ‘Yogi Pass X,’ providing benefits exceeding the monthly subscription fee of 2,900 won, and offering free delivery service without a minimum order amount.
  However, there may be confusion for consumers during the ordering process as both Coupang Eats and Baemin offer free delivery based on bundled delivery. In addition, Coupang Eats previously had the benefit of free delivery if it exceeds a certain amount. Still, if consumers order more than a certain amount at one store, a discount will be applied for free delivery.
  Consumers have generally responded positively to these services. Eliminating of delivery fees essentially lowers the threshold for consumers when ordering deliveries, expanding their choices. However, there are complaints that free delivery is ineffective based on bundle delivery. In fact, there are complaints among online communities, such as “Only bundle delivery is free of charge, so the effect is low.”
  On the other hand, there are concerns that the burden of delivery costs may eventually return to self-employed people because, to catch consumers through free delivery, it is necessary to subscribe to a plan that entrusts both delivery brokerage and delivery agency.
  As the delivery app market becomes more limited, competition between apps is bound to increase. The battle between Coupang Eats and Yogiyo for the second position, and the need to maintain user loyalty to prevent falling behind is a pressing concern for the current market leader, Baemin. However, the delivery industry sees it difficult for this competition to persist in the long term due to reasons such as passing on the burden of increased marketing costs.


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