As growth in the food delivery market slows and competition over free delivery makes profitability increasingly challenging, delivery platforms are expanding into quick commerce, offering grocery and essential item deliveries. Moving away from a focus solely on food delivery, these companies are targeting everyday consumer markets with rapid delivery times of around 30 minutes. Faced with growth limits, the delivery industry is positioning quick commerce as a new breakthrough and growth driver, intensifying competition for market share.
According to industry sources, Coupang Eats has been operating its quick commerce service, Coupang Now, in Jeju since late May. A representative from Coupang Eats stated, "We are temporarily piloting the Coupang Now service in select areas based on the existing Eats Mart model."
Eats Mart is a direct purchase-based service that delivers groceries and essentials such as meat, fruits, vegetables, and ramen. It began pilot operations in Songpa District, Seoul, in 2021 and expanded to areas including Seocho, Gangnam, and Gangdong, but ceased all operations in August of last year. Instead, Coupang Eats has expanded its grocery shopping service by incorporating various stores, broadening the range of products available for quick commerce.
Industry analysts cite the growth of the quick commerce market and the expansion of competitors as reasons for Coupang Eats' reentry into this sector. With the food delivery market's growth slowing, the strategy aims to capture new consumer demand and broaden business areas through quick commerce.
According to the National Data Agency's 'Online Shopping Trends,' the transaction volume for online food services is projected to reach 41.6 trillion won in 2025, an 11.8% increase from the previous year. However, growth has further slowed this year. From January to June, the total transaction volume for online food services was 21.8 trillion won, only an 8.4% increase from 20.1 trillion won during the same period last year. The food delivery market, which saw rapid growth during the COVID-19 pandemic, is now entering a maturity phase, with growth rates dropping to single digits.
In contrast, the quick commerce market is expected to experience rapid growth. According to global market research firm Mordor Intelligence, the South Korean quick commerce market is projected to grow from $3.16 billion (approximately 4.3 trillion won) in 2025 to $4.51 billion (approximately 6.3 trillion won) by 2031.
The increase in single-person households and dual-income families is driving demand for small, immediate purchases, and consumer expectations for fast delivery are expanding into the food and essential goods sectors, leading to a rise in demand for instant delivery.
The growth potential is also evident in the performance of major players. Baedal Minjok's quick commerce service, Baemin B Mart, saw sales surge from 421.7 billion won in 2021 to 781.1 billion won last year, an 85.2% increase in just four years. In the first quarter of this year, the number of orders and transaction volume increased by 37% and 36%, respectively, compared to the same period last year, with the cumulative number of ordering customers reaching 8 million.
Experts predict that quick commerce will evolve from a mere supplementary service to a core business for delivery platforms. Kim Dae-jong, a professor at Sejong University’s Business School, stated, "Quick commerce is an important new growth driver that can break through the growth limits of the food delivery market. The key will be to expand sales in the short term while ensuring profitability through logistics efficiency and economies of scale in the medium to long term."
* This article has been translated by AI.
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