Food delivery firms see 1 million user drop after fee hikes

A woman picks up food delivered to her home in Seoul on April 21. Gettyimagesbank

By Kim Jae-heun

The number of people using the top three food delivery firms here decreased by more than 1 million in May due to delivery fee hikes after COVID-19 social distancing rules were eased, data showed Sunday.

According to big data platform Mobile Index on June 3, the monthly active users (MAU) of Baedal Minjok, Yogiyo and Coupang Eats decreased by 3.4 percent from 33.21 million in April to 32.09 million in May. The big three food delivery firms' MAU stood at 35.32 million in March when the government's quarantine measures were still in place.

Looking into the MAU of individual firms, Coupang Eats lost 560,000 users last month, followed by Yogigyo which lost 300,000 and Baedal Minjok 250,000.

The food delivery firms said the new season has affected the declines in their MAU.

"During April to May, when the spring season comes, everyone goes out to eat or do outdoor activities ― so the number of people ordering food at home decreases. This is a normal thing that we have experienced in the previous years too," a Woowa Brothers official said. "After June, we will see an increase in the number of people using delivery services."

However, restaurant owners and consumers shared different opinions.

They said the price hikes of delivery services by the three firms have discouraged people from using their platforms.

"Baedal Minjok and Coupang Eats have changed their delivery fee policies and increased the prices earlier this year. Delivery costs rose from 2,000 won ($1.6) to 5,000 won for many restaurants," a fried chicken franchise owner surnamed Hwang said. "It is we and our customers' burden to pay the increased rate."

A 32-year-old customer surnamed Kim said he started to pick up his own food from restaurants recently, because the new delivery fees are just too expensive.

"There is nothing I can order under 10,000 won. All the restaurants nowadays require a minimum purchase of 12,000 won worth food and when you add an average 3,000 won in delivery fees here, you have to pay a total of 15,000 won for a meal," Kim said.

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