[Baemin B Mart One expanded… Coupang Eats Mart in earnest
Insufficient riders avoid supermarket products… Delivery fee increase request]
/Picture=News 1-Single delivery competition is moving from food to supermarket products. The speed war is heating up as Quick Commerce, which delivers within 30 minutes of ordering by consumers, is expanding. On the other hand, there is concern that the quick commerce delivery fee may increase as the number of single deliveries surges in a situation where there is a shortage of riders.
According to the industry on the 20th, Baedal Minjok introduced ‘B Mart One’ in Gangnam and Yeoksam last month. It is an extension of the B-Mart single delivery service that was tested in Songpa and Jamsil last year.
Existing B Mart bundled several house products and delivered, but B Mart One delivers only one house at a time, like ‘Bae Min-Won”. The delivery time, which used to be around an hour, is reduced to less than 30 minutes, but the delivery tip paid by the consumer is the same at 3,000 won. Even this is free if you order more than 3,000 won. B Mart is ‘Bureung’ Although delivery agencies such as B-Mart One deliver, Baemin Riders and Connector, their own delivery manpower, are in charge.
A Baemin official said, “There is a demand from users who want to enhance delivery quality and deliver faster, so we are piloting B Mart One in some areas.” “Specific expansion plans are undecided.”
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Coupang and E-Mart jump into Quick Commerce… Baemin ‘Delivery’ number of wins
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Baedal Minjok started promoting B Mart One in Gangnam-gu, including Gangnam and Dogok Station. /Photo = Reporter Ji-hye Yoon In the industry, when Coupangs grocery shopping service ‘Coupang Its Mart’ expanded beyond Songpa to Gangnam and Gangdong, it is interpreted that Baemin was in check. The domestic quick commerce market, led by B-Mart in 2019, is expected to grow to 5 trillion won by 2025. In addition to Coupang, several retailers such as Hyundai Department Store, GS Retail, Oasis Market, and E-Mart are taking on the challenge one after another.
An industry official said, “From the standpoint of Baemin, we have no choice but to strengthen B-Mart to maintain the preemptive effect, but in terms of product power, we will have no choice but to compete with delivery power as we will be defeated by distributors.”
Moreover, Quick Commerce is a business that Baemins parent company, German Delivery Hero, is focusing on. DH has accumulated know-how early by operating about 1,000 micro-fulfillment centers called ‘D Mart’ around the world. In Korea, as well as running a quick commerce business under the name of ‘Yomart’, he is currently sharing know-how related to customer experience improvement and operational efficiency with Baemin. For Baemin, Quick Commerce is a market that he must defend.
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“I hate shit for 3500 won”… Riders avoiding B-Mart
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In fact, Baemin is concentrating on strengthening its delivery competitiveness by hiring a dedicated vehicle delivery driver for B Mart. The problem is that riders dont prefer B-Mart delivery. Unlike food delivery fees, which soar up to 20,000 won during peak hours, most B mart delivery fees are around 3,000 to 4,000 won, and many consumers order more than 30,000 won to receive free shipping, so most of the products are heavy and bulky.
One rider said to an online community, “As the free shipping price increases, the weight and volume of B-Mart delivery products have also increased.” Rather than carrying it up and down the stairs twice, I decided to pay 6,000 to 7,000 won only once.” Among the riders, there is even a request that ‘make a function that rejects B-Mart dispatch itself’.
It is pointed out that a delivery fee increase is inevitable if B Mart One is to expand in earnest. There is a possibility that this will spread to the entire Quick Commerce. Coupang Eats Mart has already ended its free delivery promotion in some areas earlier this year and decided to receive a basic delivery tip of 2,000 won from consumers.
Regarding these concerns, a Baemin official said, “As for B Mart One, the platform bears all the additional delivery fees paid to riders like Baeminwon.”
