Seoul, South Korea - Coupang Eats, the food delivery arm of South Korean e-commerce giant Coupang(NYSE: CPNG), has launched an "Unlimited Free Delivery" service for its Coupang Wow members, effective March 26, 2024.
The initiative aims to relieve consumers grappling with the impact of prolonged high inflation on daily necessities and food delivery costs.
The service will eliminate delivery fees for Wow members, allowing them to order food from Coupang Eats without restrictions on the number of orders, order value, or delivery distance.
The move is expected to encourage consumer spending on food delivery while allowing restaurant owners to boost sales without incurring additional costs.
Coupang Eats' Wow Benefit, which previously offered discounts on food prices, has been converted to focus on unlimited free delivery.
Customers can choose whether to receive the FREE or dedicated FAST delivery order.
The service is currently available in the Seoul metropolitan area and significant regions across South Korea, and coverage is planned to expand gradually.
In 2023, Coupang delivered a record $3 billion savings to its Wow members.
The South Korean food delivery platform market is focused on the response of the market leader, Delivery Hero.
In a recent earnings call, Delivery Hero executives said they would not compete too aggressively but hinted at increased marketing spending, including in the South Korean market.
South Korea is an essential market for Delivery Hero, with nearly 50% of its revenue coming from the country.
