The Lee Jae-myung government has decided to provide an average of 250,000 won in 'living recovery consumption coupons (hereinafter referred to as living support funds)' per person. Since restaurants accounted for the largest share of the usage of emergency disaster support funds during the COVID-19 pandemic in 2020, the delivery industry is closely monitoring the anticipated surge in delivery demand.
In particular, if the 30 trillion won living support fund is distributed in local currency, it is expected that delivery through public delivery apps, which can utilize these funds, will increase significantly. Attention is focused on whether there will be substantial changes in the competitive delivery app market led by Baedal Minjok (hereinafter referred to as Baemin) and Coupang Eats.
According to related industries on the 23rd, the number of users of major public delivery apps is on the rise. Public delivery apps are those developed and operated directly by local governments or commissioned to private companies. Since they provide support through local currency or gift vouchers, the commission fees are relatively low at 1-2%. This is an advantage compared to Baemin and Coupang Eats, which charge a maximum commission fee of 7.8%, as it places a lesser burden on store owners.
According to Mobile Index, the monthly active users (MAU) of Shinhan Bank's public delivery app 'Ddaenggyeoyo' stood at 1.44 million last month. This represents an increase of about 48% over the 970,000 users reported in February. During the same period, the MAU of the public delivery app 'Meokkkaebi,' which is officially used in 12 local governments, grew 90% to 380,000 from 200,000 in February. The MAU of the public delivery app 'Baedal Teukgeup,' promoted by President Lee Jae-myung during his time as the governor of Gyeonggi Province, was recorded at 320,000, an increase of about 30,000 compared to February.
An industry insider noted, 'In terms of MAU figures, Baemin has 22.4 million users, while Coupang Eats has 11.11 million. In contrast, the MAU of the three public delivery apps is relatively modest,' while stating, 'However, the upward trend is steep, indicating that the market expansion speed is fast.'
In this situation, if the Lee Jae-myung government’s living support fund is distributed in local currency, public delivery app companies such as Ddaenggyeoyo, Meokkkaebi, and Baedal Teukgeup are expected to begin serious market expansion. A representative of this is Ddaenggyeoyo. Ddaenggyeoyo is closely chasing Yogiyo, the third-largest delivery app in market share, leveraging its collaboration with Seoul City and Shinhan Bank established last March.
Last month, Yogiyo's MAU was 5.02 million. According to Shinhan Bank, as of the 18th, Ddaenggyeoyo had 5.17 million members and 237,000 affiliates. This represents a year-on-year increase of 25.8% and 22.8%, respectively. Currently, Ddaenggyeoyo is planning to collaborate with Shinhan Bank to develop related services that would allow users to easily order food through local currency once the living support fund is fully rolled out.
An industry insider stated, 'Ddaenggyeoyo is a public delivery app specialized in Seoul, and Baedal Teukgeup is specialized in Gyeonggi Province,' adding, 'Given their significant local influence, consumers may choose delivery apps that facilitate the use of living support funds provided in local currency.'
However, there are also voices suggesting that since public delivery apps are not fundamentally competing based on competitiveness, they may not shake up the delivery market significantly. Lee Eun-hee, a professor of consumer studies at Inha University, commented, 'Public delivery apps do not match Baemin and Coupang Eats in terms of convenience or menu selection. To truly shake up the market, they must possess inherent service competitiveness rather than relying on events like the living support fund.'
Some opine that instead of regulation like the recently raised proposal for capping delivery app commission fees, the initiative to activate public delivery apps through living support funds may serve as a policy alternative to check Baemin and Coupang Eats. An industry insider remarked, 'Top-down regulation has only led to backlash and complaints from the industry,' suggesting that 'it seems more like an effort to induce consumers to choose and try new alternatives.'
Seo Yong-gu, a professor of business administration at Sookmyung Women's University, stated, 'This is a policy that embodies the national philosophy of the Lee Jae-myung government. Whether it will activate public delivery apps through the living support fund will also be a significant momentum.'