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Delivery app spending nears 100,000 won per person, highest since Covid-19

Published: 09 Apr. 2025, 15:39 Updated: 09 Apr. 2025, 18:55

Baemin, food delivery bikes are parked in front of one of the company’s centers in Seoul. [YONHAP]

Consumer spending on food delivery apps in Korea has reached its highest level since the Covid-19 pandemic, according to new industry data.

Market tracker WiseApp reported Wednesday that approximately 23.5 million Koreans aged 20 and older had made at least one payment through a food delivery app last month.

On average, users placed 3.7 orders and spent 97,059 won ($65.40) in March. The total estimated transaction volume stood at 2.28 trillion won — the highest monthly figure since March 2022, when spending reached 2.32 trillion won during the pandemic’s peak.

By age group, users in their 30s spent the most, averaging 101,491 won per person.

Among platforms, Baemin led with 22.38 million users. It was followed by Coupang Eats with 11.01 million users, Yogiyo with 5.04 million and newer entrant Ddangyo with 1.53 million.

Despite concerns regarding weakening consumer sentiment amid persistent inflation, delivery app spending has surged — largely due to a wave of free delivery promotions that have rolled out since last year.

Coupang Eats led the trend by offering unlimited free delivery for its WOW members. Baemin and Yogiyo followed with similar incentives.

Baemin motorcycles are parked in front of a Baemin rider center in Seoul in 2022. [YONHAP]

However, shifting the cost burden of delivery from consumers to platforms has come at a price. While revenue continues to grow, profitability across the industry is declining.

Woowa Brothers, the operator of Baemin, reported 4.32 trillion won in consolidated revenue in 2023, a 26.6 percent year-over-year increase. However, operating profit fell 8.4 percent to 640.8 billion won, due in part to a sharp rise in outsourcing costs — primarily rider payments — which reached 2.24 trillion won.

“There are short-term losses from free delivery and discount campaigns, but we can’t afford to lose ground in the market share battle,” an industry official said. “It will be difficult to scale back benefits anytime soon.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY KWEN YU-JIN [[email protected]]