The delivery platform market is entering a new phase as the competition intensifies between two dominant players amid stagnation. Facing limits to growth, companies are focusing on keeping existing users engaged on their platforms for longer periods. As a result, competition is heating up over strategies to increase user retention through subscription services and quick commerce.
According to a report from IGAWorks' Mobile Index on July 23, the monthly active users (MAU) of delivery platforms have remained around 29 million in the first half of this year. Although June saw a peak of 29.65 million, the figure has not surpassed the 30 million mark. Analysts suggest that the market has effectively reached saturation as the influx of new users has slowed.
An IGAWorks representative stated, "The total user base for delivery platforms has been hovering around 29 million since March, indicating that competition for market share among delivery applications is intensifying rather than new user acquisition in the delivery market itself."
The two-player structure has become more pronounced. According to WiseApp and Retail, Baedal Minjok maintained its position as the industry leader with 22.69 million MAU in June. However, its growth rate was only 1.4% compared to January's 22.38 million. Coupang Eats, which has expanded its free delivery and discount offerings, saw its user base grow from 12.65 million to 12.99 million, a 2.7% increase, intensifying its competition with Baemin.
In contrast, the once-dominant delivery apps Yogiyo and Dangaeyo have seen their user numbers decline. Yogiyo's users dropped from 4.31 million in January to 3.89 million in June, a decrease of 9.7% (420,000 users). Dangaeyo experienced a significant decline from 3 million to 2.18 million, a 27.3% drop, the largest among major delivery apps. The rapid exit of users followed the end of a government-supported consumer coupon initiative aimed at boosting public delivery apps. The MAU, which peaked at 3.45 million in October and November last year, has seen a continuous decline for seven months from December to June.
As the delivery app market approaches saturation and the two-player structure strengthens, operational strategies are evolving. The focus has shifted from acquiring new users to attracting customers from competitors and increasing the frequency of orders and customer loyalty.
Coupang, which operates Coupang Eats, is taking the most aggressive approach. The company is maximizing the 'lock-in' effect by linking its subscription service, Wow Membership, with shopping, online video services (OTT), and food and convenience store delivery services to keep customers engaged on its platform.
The subscription strategy is proving effective not only in attracting new users but also in increasing repeat orders from existing customers. According to WiseApp and Retail, the average monthly payers across major retail platforms have generally increased since the introduction of subscription services, with Coupang Eats showing the highest growth rate at 46.1%.
Baemin is focusing on enhancing customer loyalty through its quick commerce service, Baemin B Mart. By rapidly delivering groceries and daily necessities, Baemin aims to increase users' time spent on its platform and create a virtuous cycle that leads to more delivery orders.
Jeon Seong-min, a professor at Gachon University, stated, "The competition among delivery platforms has now transcended simple food order mediation. The key competitive advantage lies in connecting various services such as shopping and content to keep customers engaged on the platform for extended periods." He added, "If an infrastructure for 'last-mile' delivery encompassing various products is established, it will open up greater growth opportunities in terms of service expansion and profitability."
* This article has been translated by AI.
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