The focus of competition in the quick commerce sector is shifting from "30-minute delivery speed" to who can secure logistics and store networks at lower costs and with greater density. Baedal Minjok (Baemin) and Coupang Eats are competing in this arena with contrasting approaches: Baemin relies on logistics centers, while Coupang Eats utilizes store partnerships.
According to industry sources, Baemin, operated by Woowa Brothers, is building its infrastructure around its own logistics network. Baemin B Mart delivers fresh produce, processed foods, and daily necessities within 30 minutes to one hour from over 80 urban logistics centers (PPCs) across the country. In the first half of this year, Baemin expanded its reach to less densely populated regional cities by establishing new PPCs in Gwangju's Seo-gu and Gwangsan-gu, Mokpo in Jeollanam-do, Gyeongsan in Gyeongbuk, and Yangju in Gyeonggi Province.
Additionally, Baemin is partnering with large retailers like Homeplus and convenience stores to enhance the speed of its logistics network while also increasing product variety through existing distribution channels. According to Woowa Brothers, the number of orders for B Mart in the first quarter of this year rose by 37% compared to the same period last year. The cumulative number of customers who have ordered from B Mart has reached 8 million, with customers shopping through B Mart three or more times a month increasing by 54% year-on-year.
Coupang Eats, operated by Coupang, shifted its strategy after ending its direct purchase service, Eats Mart, last August due to the burdens of rent and inventory management. It has since introduced a "shopping" service that allows local stores, convenience stores, and corporate supermarkets (SSMs) to join its app, utilizing existing stores as delivery hubs to reduce initial investment costs.
However, Coupang Eats has recently turned its attention back to a direct purchase model. In May, it applied for the trademark "Coupang Now" and began pilot services in select areas. This model involves purchasing products directly, storing them in micro-fulfillment centers (MFCs), and having riders deliver them.
The push by delivery platforms into quick commerce is also driven by a strategy to encourage repeat purchases, thereby increasing usage frequency. While food delivery typically involves single-meal transactions, shopping for groceries and daily necessities has a shorter repurchase cycle, making it advantageous for boosting platform usage.
In a recent report, Samjong KPMG identified the "lock-in effect" as a key reason for the delivery industry's expansion into quick commerce, moving beyond groceries and essentials to include more everyday products and expanding partnerships with retail stores. The lock-in effect refers to the phenomenon where consumers become accustomed to a specific product or service, making it difficult for them to switch to competing offerings. Samjong KPMG stated, "Quick commerce aims to increase users' app engagement time and purchase frequency, thereby strengthening the lock-in effect within its ecosystem."
Amid this backdrop, experts have mixed views on the resumption of direct purchases in the delivery industry. Professor Kim Dae-jong of Sejong University noted, "The store-based model makes it difficult to standardize services due to varying inventory and product configurations at each location. By incorporating direct purchases, companies can secure high-demand products in advance, enhancing delivery speed and product competitiveness."
Professor Lee Eun-hee of Inha University suggested that Coupang Eats' attempt at direct purchasing may also aim to avoid conflicts over commissions with partner stores, stating, "Direct purchasing allows the delivery app to set margins directly, which may help them escape the commission conflict structure."
* This article has been translated by AI.
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