[비즈한국] Is the era when "Baedal Minjok (Baemin)" was synonymous with food delivery coming to an end? The dominance of Baemin, which stood as the unrivaled leader, is being shaken. Coupang Eats has issued a strong challenge to Baemin's long-standing monopoly. Notably, as of last August, it has even risen to the number one spot for delivery apps in the Seoul area. The latecomer, Coupang Eats, has surpassed Baemin in Seoul, considered the core hub of delivery services.
While Baemin still leads Coupang Eats in nationwide statistics, observers suggest that it will not be easy for Baemin to overcome this crisis, especially considering that Coupang Eats has focused its services on major metropolitan areas like Seoul and its surrounding capital region. Although Baemin has introduced various response strategies such as "Baemin Club," which is similar to the Wow membership, analysts suggest that maintaining its stable number one position as it did in the past will be difficult.
Coupang Eats, #1 in August Transaction Value in Seoul
When the "latecomer" Coupang Eats first emerged in the delivery app market dominated by Baemin, there was a widespread belief that it would not be easy to catch up. However, Coupang Eats grew rapidly by leveraging the Coupang Wow membership ecosystem. According to an analysis of payment data from eight credit card companies by the office of Representative Kim Nam-keun of the Democratic Party of Korea, Coupang Eats' transaction value in the Seoul area reached 211 billion won in August, surpassing Baemin (160.5 billion won).
Critics suggest that Coupang Eats' "free delivery" move changed the landscape. In late March of last year, Coupang Eats became the first in the industry to introduce a "free delivery" policy. By providing free delivery to paid Coupang membership subscribers, they attracted many of the 15 million Wow membership users (estimated last year) who were exhausted by delivery fees ranging from 2,000 to 5,000 won per order.
Compared to two years ago, the figures have undergone a sea change. In January 2023, Baedal Minjok's credit card transaction value in Seoul was 195.6 billion won, more than three times higher than Coupang Eats' 63.5 billion won. For delivery app companies, "Seoul" holds significant importance. It is not only the largest market segment but also a place where consumer purchasing patterns shift rapidly.
Baemin Still #1 Nationwide
Of course, Baemin remains in the lead on a nationwide scale. According to the same data from Rep. Kim Nam-keun's office, Baedal Minjok's nationwide transaction value across eight credit card companies was 824.8 billion won in December of last year, leading Coupang Eats (539.5 billion won) by approximately 300 billion won.
Baemin also holds the top spot for the number of users nationwide. According to Mobile Index, Baedal Minjok's monthly active users (MAU) in September was 22.2 million, more than 1.8 times higher than the 12.07 million of Coupang Eats. However, when looking at the year-on-year growth rate, Coupang Eats' MAU increased by a staggering 88.8%.
Faced with this urgent threat, Baemin has also begun to respond actively. They have expanded discount benefits and launched "Baemin Club," similar to the Wow membership. They also introduced "Baemin 1," a single-order delivery service.
The company has also shown attempts to pioneer new areas. Notable examples include "Hangureut," a small-order service for single portions, and "Ganpyeon Pickup," a takeout ordering service. Hangureut has surpassed 10 million cumulative orders. The convenient grocery delivery service "Baemin B-Mart" is also receiving a positive response. Revenue from goods including Baemin B-Mart reached 756.8 billion won last year, a 10% growth compared to 688 billion won in 2023. The company also achieved a surplus based on annual EBITDA (earnings before interest, taxes, depreciation, and amortization) last year.
Nevertheless, industry experts believe that since "food delivery" is the core business, the current trend suggests that Coupang Eats will likely overtake Baemin sooner or later. An industry official predicted, "Market trends for delivery apps usually reflect in the order of Gangnam → Seoul → Capital Region → Nationwide. Those in the know are aware that Coupang Eats already showed significant metrics in Gangnam starting early last year. If it used to be a Baemin-dominated system, wouldn't it now transition into a two-strong system where Coupang Eats and Baemin constantly trade places?"