One of the best things about living in Korea
is that a wide range of delicious food is only a phonecall away.
Mobile applications are also jumping into the food delivery market, and business is
booming. Connie Kim reports. Food menus meet with Internet
technology. This is the concept a growing number of people
are embracing in Korea, including 36-year-old Lim Hyun-woo.
Returning from work after a long day, Lim opens a food delivery application on his smartphone
and scrolls down to decide what he wants to eat. “I live alone, so I usually order from food
delivery applications. There is a lot more variety to choose from and I don’t have to
worry about losing menus.” These types of food delivery application companies
have created a profitable business model. They receive around 13 percent of every order
in commission fees from participating restuarants. It’s another way of tapping into the prospering
food delivery market that is estimated at around 9-point-7 billion U.S. dollars and
growing at an annual rate of more than 20 percent. “The payment systems on smartphones have given
direct access to hundreds of restaurants helping the food delivery application market grow
at a fast pace.” The love for delivery comes from the national
character of Koreans, who prefer things fast, faster and fastest… which puts a premium
on convenience. The rising demand has made the market a competitive
one, with food delivery application companies battling it out for a bigger piece of the
pie. In two years, experts say around one-third
of the total delivery industry will be transferred to the online and mobile delivery market. New competitors are now looking to jump in.
One social commerce company has been selling discount coupons of up to 30 percent for shoppers
since February. Offering more options for a wider array of
palates,… in a convenient manner:… it’s a combination that’s sure to continue enticing
consumers to open their wallets… and their front doors to food deliverymen.
Connie Kim, Arirang News.