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For WoW members starting from the 26th… Yogiyo, second in the ‘unlimited free delivery’ service provider industry, is closely following, challenging Baemin, the powerhouse in first place. Shinho restaurant owners “The existing rate plan does not have this benefit… ‘Smart rate plan’ with high commissions” “The burden of forced conversion”
Entered 2024-03-20 15:55
Published in newspaper 2024-03-21 page 8
As Coupang Eats Service (hereinafter referred to as Coupang Eats) announces a revamp of its ‘unlimited free delivery’ service, the burden on store owners is increasing. This is because only store owners who subscribe to the ‘Smart Rate Plan’ newly introduced by Coupang Eats earlier this month can enjoy the benefits.
Coupang Eats’ position is that it is a service introduced to increase sales for business owners, but store owners claim that they have no choice but to sign up for a ‘smart rate plan’ with a high fee in order to avoid being excluded from companies that apply free delivery fees. According to related industries on the 20th, Starting on the 26th, Coupang Eats will begin providing unlimited free delivery service to members of Coupang’s membership service, WoW. The WoW member discount benefit, which previously provided a 10% discount on food prices, is being converted to unlimited free delivery (Wow Benefits). Accordingly, WoW members can purchase food through Coupang Eats without any restrictions on the number of orders, amount, or distance. You can order delivery for free. In addition, separate discount coupon benefits provided by each store can also be applied in duplicate. However, the free shipping benefit only applies to ‘bundle delivery’ and excludes the premium service ‘one-house delivery’. In fact, it is interpreted as an intention to give up single delivery and focus on bundled delivery. Coupang Eats plans to increase its market share by eliminating delivery fees, which act as a psychological burden on consumers, by using the ‘unlimited free delivery’ card. According to Mobile Index, an actual data analysis platform, as of January 21st, the number of daily active users (DAU) of Coupang Eats was 1,115,160 million, surpassing Yogiyo (1,001,706) for the first time. The industry believes that Coupang Eats has surpassed Yogiyo and is challenging Baedal Minjok, the number one company in the industry, by introducing this ‘unlimited free delivery’ service. However, store owners are dissatisfied because the burden of delivery app commissions may increase. . Only store owners who subscribe to the ‘Smart Rate Plan’ introduced by Coupang Eats on the 7th of this month, rather than the existing rate plan, can receive the benefit of free delivery fees, so store owners using the existing rate plan may take a direct hit to sales. The smart rate system The delivery fee borne by the store owner is fixed at 1,900 to 2,900 won depending on the region, and the delivery fee paid by consumers is automatically determined by Coupang Eats based on order distance, delivery distance, weather conditions, demand by time zone, and regional conditions. Additionally, since there is no distance limit, it is argued that if an order is received from a distant place, there is a higher chance that the food will go cold, which will ultimately result in damage to the store owners. Accordingly, opinions are emerging among restaurant owners to cancel the Coupang Eats service or increase menu prices instead of switching to a smart rate plan to reduce the burden of fees. An official in the restaurant industry said, “If consumers only flock to free delivery and many businesses move to the smart rate system, store owners will eventually have no choice but to switch (to the smart rate system).” “The possibility of passing this on to store owners through increased fees cannot be completely ruled out,” he said. Reporter Park Ja-yeon naturepark127@viva100.com
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