Coupang Eats starts a 'quick commerce' service
Coupang Eats, a food delivery service provider, started a quick commerce service that aims to deliver products within 15 minutes of the order being made.
Quick commerce services usually deliver groceries and household goods to customers within an hour.
It is seen as the next generation of e-commerce and is being offered by a number of delivery companies, including Baedal Minjok, or Baemin, and Delivery Hero.
Coupang on Wednesday confirmed that Coupang Eats rolled out a quick delivery service in some areas in Songpa District, southern Seoul, starting Tuesday. The company plans to gradually expand the coverage area.
It said it can get the items delivered in 10 to 15 minutes – shorter than the 30 to 40 minutes offered by Baemin.
Quick commerce delivery is usually made on foot or by bicycle or motorbike.
Coupang refused to comment on where the products are being warehoused before delivery.
Coupang Eats delivers a wide range of products, from meal kits to fruits, salads, meat and ice cream.
It costs 2,000 won ($1.7) for a single delivery, and does not require a minimum spending amount.
Coupang started a similar service in Japan last month.
Food delivery rivals Baemin started a similar service in 2019 and Delivery Hero since last year.
“Quick commerce is commonly used by single-person households or people in their 20s and 30s,” said Lee Yoon-seong, a spokesperson for Woowa Brothers, the operator of Baemin. “Meal kits, water and milk are some of the well-received items delivered through quick commerce.”
Yoo Seung-woo, an analyst at SK Securities, said the growth of quick commerce could hurt the convenience store industry.
“Through the growth of e-commerce operators, a number of retail channels, including discount marts and department stores, have been damaged while convenience stores benefited from a rise of single-person households. Quick commerce could impose a significant impact on the convenience store industry.”
BY JIN MIN-JI [email@example.com]