07 Sep Competition in Korea’s online delivery services market
In recent years, startups have been instrumental in developing Korea’s popular online delivery services. Supported by artificial intelligence, which predicts consumers’ orders, startups including Coupang and Market Kurly have attracted customers by offering same day and early morning deliveries at 7am.
However, as COVID-19 continues to increase demand for online deliveries, conglomerates are seeking to expand their domestic market share and pursue overseas markets.
For example, NAVER Corp is adding three retail chains and Hyundai Department Store’s grocery unit to its online platform. The company already has a customer base of 40 million people and is offering discounts for using their mobile payment service, Naver Pay.
Lee Sueng-hoon, an anslyst at IBK Investment & Securities, said “we added Amazon and Alibaba to the peer group [of Naver]…we believe that the company can grow as a global platform covering South Korea, Japan and Southeast Asia.”
In response to the growing competition, startups will focus on customer service and rewarding loyal customers. Kim Se-min, a Coupang spokesperson, said “[Coupang’s] best strategy is to offer good services.”
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