쿠팡이츠 배달비 무료 지역Free package delivery instead of 10% discount on food
Coupang Eats announced on the 18th that in order to relieve the burden of delivery costs, it will start providing ‘unlimited free delivery’ service for Coupang’s paid membership ‘Wow’ members from the 26th.
Previously, Coupang Eats had been providing ‘food price discounts’ to WoW members. With this reorganization, it was decided to switch to ‘unlimited free delivery’ instead of food price discounts. Wow members can choose between △free delivery and △home delivery. Of the two, only bundled delivery is free. The company explains that even if it is a bundled delivery, it provides quick delivery to customers by optimizing the delivery route considering the estimated arrival time.
Wow members can use the Coupang Eats free delivery service without restrictions on the number of orders, order amount, or long-distance delivery. It can also be used in conjunction with separate coupons or discounts. Coupang Eats Wow benefits are available in applicable areas such as the metropolitan area and metropolitan cities, as well as major areas in Chungcheong, Gangwon, Gyeongsang, and Jeolla Province, and Jeju City in Jeju Island. We plan to gradually expand the application area in the future.
Who pays the delivery fee?
Coupang Eats announced that it would relieve customers of the pain of rising prices by eliminating delivery fees and allow restaurant owners to increase sales without burdening additional costs. This is a self-rescue measure to address the decline in consumer use of delivery apps. Last year, online transaction volume for food delivery services amounted to 26.4 trillion won, down 0.6% from the previous year. The explanation is that it took into account the fact that restaurant owners were complaining of difficulties due to a decrease in sales as the number of users decreased due to the burden of rising food delivery costs.
This free delivery service only applies to restaurants using Coupang Eats’ ‘Smart Rate Plan’. Coupang Eats introduced the ‘Smart Rate Plan’ on the 5th of last month. Coupang Eats automatically optimizes and sets the order brokerage fee of 9.8% and the delivery fee borne by the restaurant owner between 1,900 and 2,900 won. In other words, the restaurant owner pays the delivery fee set by Coupang Eats, and Coupang Eats pays the difference.
This can also be interpreted as a strategy to reduce the market share gap with Baedal Minjok, operated by Woowa Brothers. Baemin has consistently ranked first, recording a market share of about 60%. This free delivery is a challenge to Coupang Eats, which ranks second.
Additionally, this benefit is expected to have the effect of increasing WoW members. WoW members are currently providing △Rocket Delivery △Rocket Fresh △Dawn Delivery △OTT service ‘Coupang Play’. It is predicted that the customer lock-in effect will be doubled by providing free bundled delivery benefits.
A Coupang official said, “Last year, we provided a record $3 billion (KRW 3.9162 trillion) in savings benefits to Coupang Wow members. Coupang’s growth reflects its continuous efforts to provide ‘Wow’ to customers. Coupang Eats Wow Benefits “We expect that this will expand opportunities to create an environment where not only customers but also local merchants can grow together,” he said.
Meanwhile, concerns are being raised that cut-throat competition in the delivery industry will begin again. Previously, Baedal Minjok launched ‘Baemin 1 Plus’ to ease the burden of delivery costs. In response, Coupang Eats advised restaurant owners to set customer delivery tips the same as Baemin, and later introduced a smart rate system.
An industry insider said, “Amid fierce competition in the delivery industry, Coupang Eats has been carrying out aggressive marketing, emphasizing the priority of consumers. We will have to wait and see what impact it will have on restaurant owners and riders in the future.”
Business Watch Co., Ltd.
Copyright Business Watch All Rights Reserved.
