Partnerships between early morning delivery companies and major platforms are reshaping the online grocery market. Following the joint grocery service launched by Naver and Kurly last year, Toss and Oasis have teamed up this year. While both alliances aim to combine the customer base of platforms with the product and delivery capabilities of retailers, they differ in product offerings, customer acquisition strategies, and the scope of collaboration.
According to industry sources, Toss and Oasis signed a dedicated commerce partnership agreement on September 17 and established an 'Oasis Market Exclusive Section' on Toss Shopping. When consumers place orders on the platform, fresh food is delivered through the existing logistics network. Previously, Naver and Kurly formed a strategic alliance in April last year and opened 'Kurly N Mart' on the Naver Plus Store in September.
The differences between the two alliances first emerge in how they structure their product offerings. At its launch, Kurly N Mart secured over 5,000 products that were not previously offered by Kurly, adding popular food items and bulk, cost-effective products from Naver's Smart Store. This combination expanded Kurly's fresh food image by incorporating Naver's product range, targeting households with four or more members.
In contrast, the Toss exclusive section directly connects over 7,000 fresh products purchased by Oasis with real-time inventory, pricing, and discounts for items nearing their expiration dates, maintaining the existing sales structure within the Toss app. While Kurly used the partnership to refresh its product lineup, Oasis has primarily expanded access to its own products and services.
The customer attraction strategies reflect the business foundations of each platform. Naver has increased its grocery customer base by focusing on paid membership users. It offers free shipping for Naver Plus members on purchases over 20,000 won, drawing search and shopping users into the grocery category.
Toss has designed a user flow that allows financial app users to complete grocery shopping directly within the app. This process enables users to explore products, make payments, and track deliveries all in one go, without separate registration. This marks the first time Toss Shopping has created a dedicated tab for specific sellers, although it remains to be seen whether it can convert financial app users into grocery customers.
An anonymous e-commerce industry insider noted, "Naver has expanded the user flow of shopping searchers into grocery shopping, while Toss faces the challenge of instilling a new shopping behavior in financial app users. The key will be providing a compelling reason for users to continue grocery shopping within the Toss app beyond simple payment convenience."
There are also strategic differences in defining the scope of collaboration. Kurly operates its own app while keeping the possibility of partnerships with platforms other than Naver open, ensuring flexibility in sales channels. In contrast, Oasis has streamlined its external partnership channels to Toss Shopping, emphasizing close synergy with Toss.
Business performance is first confirmed through the pioneering Kurly N Mart. Within a year of its launch, Kurly N Mart's monthly transaction volume has grown nearly tenfold compared to its initial opening, and the average monthly order count per person has increased by 35%. Seven out of ten total orders include Kurly's exclusive products, known as 'Kurly Only.' As latecomers, Toss and Oasis now need to demonstrate the conversion and repurchase rates of Toss users.
A common factor in strengthening collaboration is equity investment. In May of this year, Naver participated in Kurly's 33 billion won capital increase, raising its stake to 6.2%. Similarly, Toss's operator, Viva Republica, invested 30 billion won to acquire approximately 2.3% of Oasis. The funds will be used to expand logistics infrastructure and secure personnel.
Experts caution that the alliances between retailers and platforms need to be critically assessed for their potential to lead to actual profitability improvements. Hwang Yong-sik, a professor at Sejong University, stated, "While partnerships with platforms may appear to drive outward growth, if the burden of entry fees and marketing costs increases, they could fall into the 'trap of growth' where little remains. After the initial phase of partnerships, both retailers and platforms should objectively evaluate whether they have achieved substantial performance increases and profit improvements."
* This article has been translated by AI.
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