Food delivery company Yogiyo launches new service to increase market share
SEOUL, AJU - Delivery Hero, a Berlin-based global food delivery chain, will introduce a new service to boost its presence in South Korea's saturated market to counter an aggressive push by its home-grown competitor who has used social media channels to broaden a network of customers.
Industry data showed that the value of South Korea's delivery service market is estimated at about 20 trillion won ($17.6 billion) as of 2018. Baedal Minjok, a top food delivery service app operated by Woowa Brothers, controls about 50 percent, while Delivery Hero is the second largest, operating three food delivery service apps such as Yogiyo, Baedaltong and FoodFly.
“Based on our global food technology and operational know-how as a representative of South Korea's leading delivery service app operator, we will provide services that can provide a differentiated order experience,” Delivery Hero Korea CEO Kang Shin-bong told reporters on Wednesday.
To offer customers with a new food-ordering experience, Kang said Delivery Hero would introduce “Yogo”, a non-stop food delivery service which enables customers to order food from restaurants which do not offer delivery services.
Because Baedal Minjok and other food delivery service companies operate a limited number of deliverymen and count on fixed-price listing fees, many restaurants are double-burdened to forge extra contracts with a pool of deliverymen.
Yogo will provide delivery services for new popular restaurants at an affordable fee and provide a differentiated simple food ordering experience for customers by utilizing a nationwide delivery network of Barogo, a start-up invested by Delivery Hero. Kang said Delivery Hero would increase the number of delivery workers.
Delivery Hero, which has about 60,000 partner restaurants, will also seek to increase the number of partners to 100,000 by the end of the year, Kang said.
Baedal Minjok has about 80,000 partner restaurants nationwide. It has used aggressive marketing with money from foreign investors. In December last year, Woowa Brothers secured $320 million in fresh foreign capital that would accelerate the development of autonomous mobile robots and a new delivery service abroad.
Woowa Brothers said that with an inflow of fresh foreign capital, it would actively seek its overseas expansion, starting with a delivery service in Vietnam, and the development of autonomous food delivery robots. The company also plans to provide a total solution to small food-related firms for their sales and customer management.