Yes, you don’t pay a delivery charge for food order in Korea! I guess there are several reasons for that. First, South Korea is relatively small in terms of size of country but heavily populated. Also, there are so many small owner-operated restaurants that competition in restaurant industry is very tough.
And as you pointed out, Woowa Brothers abolished the transaction fee to restaurants. That’s why Woowa Brothers already began vertical integration and expansions to other countries. They acquired companies which are aligned with their core business and started running their own food delivery business and expanding their business to other categories such as meal vouchers and lunch box.
Also, they are trying to expand their business in Japan.
Thank you for your comment and you should definitely come to Korea and experience this quick, no-delivery-charge food. You can order food no matter where you are – while hiking, lying on the beach!
I think the penetration rate is still quite low, considering the market size of food delivery industry. However, your point is very obvious and the market will become saturated eventually. That’s why Woowa Brothers already began vertical integration and expansions to other countries. Now that they can’t make revenue from transaction fees because they abolished it, they started running their own food delivery business and expanding their business to other categories such as meal vouchers and lunch box.
Let’s see how they grow themselves!
Thank you for good points!
I see Trader Joe’s and Whole Foods as direct competitors in organic food market business. But other than relatively lower price compared to Whole Foods, I am not very satisfied with shopping experience at Trader Joe’s. It’s like buying grocery at market. I guess customers who are willing to pay more for organic food might prefer more pleasant shopping experience, such as one at Whole Foods. How do you think Trader Joe’s should differentiate itself from Whole Foods?
It’s very interesting that either social media or mobile instant messengers such as Kakaotalk and Line(Korean equivalent of Wechat) try to monetize their huge user base by linking them with game service.
It’s getting more and more crucial for mobile application services to provide users with curated information and service offerings.