The battle for delivery app subscriptions is spreading nationwide. The delivery app market leader Baedal Minjok (hereafter Baemin) will expand its subscription service, which had been focused on Seoul and the metropolitan area, to the entire country starting on the 4th.
The second-largest, Coupang Eats, plans to solidify its market share, which it increased through free delivery services, with its subscription service. Yogiyo, which first launched a subscription service in the industry, is aiming to reclaim the second spot.
◇ intensifying battle for delivery app market share through subscription services
According to industry sources on the 2nd, Woowa Brothers, the operator of Baemin, will expand the application area of the "Baemin Club" nationwide starting on the 4th. The Baemin Club is a subscription service launched in June last year. Until now, it was only available in Seoul, the metropolitan area, and five major cities, but it will soon be accessible in eight cities, including Jeju.
The regular subscription fee for the Baemin Club is 3,990 won per month, but currently, users can pay only 1,990 won a month for benefits such as ▲ free delivery for economy delivery (multiple deliveries) ▲ discounts on delivery for combined orders ▲ free delivery based on additional distance. The discounted rate of 1,990 won will remain until further notice. Additionally, coupon discounts are also available.
Starting April 1, Baemin will unify the store information that was displayed separately in the app for store delivery (third-party delivery) and food delivery (Baemin's own delivery). Bom Kim, the CEO of Woowa Brothers, said, "Our mission is to simplify the ordering process" and stated, "We will put Baemin back on the path of growth with a convenient and affordable customer ordering experience."
Coupang Eats, which is rapidly chasing Baemin, has implemented unlimited free delivery for its national subscription service since May last year. It has adapted Coupang's membership service "Rocket Wow" for the delivery app, allowing Rocket Wow members to pay a monthly fee of 7,890 won for unlimited free delivery on Coupang Eats. There are no limits on the number of orders, amounts, or long-distance deliveries, and separate coupon discounts also apply. In addition to Coupang Eats, free shipping, delivery, direct purchases, free returns, exclusive discounts for Wow members, and free viewing of OTT (Coupang Play) are also available.
Yogiyo, which ranks third in the industry, was the first to launch the subscription service "YogipasX" before its competitors. When it was introduced in May 2023, the subscription fee for YogipasX was 9,900 won per month, but it has now been reduced to 2,900 won. Yogiyo explained that the fee was lowered to boost sales for franchisees.
To survive in the fierce competition between Baemin and Coupang Eats, Yogiyo has formed partnerships with corporations such as Naver Plus Membership, Toss (Toss Pay), and Shinhan Card so that members of these companies can use YogipasX for free without paying a separate subscription fee. It is also testing a 5% discount for takeout orders and a 7% discount for in-store dining.
◇ "The company that quickly understands consumer needs will gain the upper hand"
The subscription war among the three delivery apps is expected to intensify. This is due to the decreasing gap in market share among the companies.
According to the mobile index from AGAWorks, based on credit card payment amounts, Baemin's market share was an overwhelming 71.1% in January last year. At that time, Coupang Eats had 18.4%, and Yogiyo had 10.5%. However, by December last year, Coupang Eats' market share rose to 35.3%, nearly doubling in 11 months. During the same period, the number of users surged to 9.6 million, a 72% increase compared to January last year.
Baemin maintained its lead with 22.43 million users, but its market share decreased to 57.6%. Yogiyo's market share fell below 10%, pushing it from second to third place in user rankings.
An industry insider noted, "The free delivery war, which ignited last year, will likely reignite as a subscription war," adding, "The number of loyal customers will translate into market share, so the competitive subscription war will continue for some time."
Another insider commented, "In this era of high inflation, consumers' first consideration to reduce expenditure is often the cancellation of subscription services," while stating, "To gain a definite advantage in the subscription war, services that quickly reflect consumer needs must be introduced."