1️⃣ Free Delivery Unleashed 🚚
Coupang Eats, a titan in Korea's food delivery scene, has just revolutionized its service. Scrapping the old 10% discount, it now entices with a mouth-watering proposition: zero delivery fees! This strategic pivot, effective from March 26, 2024, is part of their WOW membership. With a paltry fee of less than $4 monthly, it's no surprise customers are flocking. Bom Kim, the CEO, couldn't hide his excitement, noting a whopping order volume doubling since early Q2. The essence? Make foodies' lives easier and restaurants' cash registers heavier.
2️⃣ Membership Surge 📈
The allure of free delivery has not just caught the fancy of the average Joe but has significantly beefed up their membership base. CFO Gaurav Anand revealed a 27% year-over-year jump in memberships, hitting the 14 million mark. This surge underscores the tantalizing appeal of the WOW membership, which promises to rid customers of the dreaded delivery fee and has them coming back for more. In the competitive arena of food delivery, Coupang Eats seems to have found its golden goose.
3️⃣ Global Trendsetters 🌍
It turns out Coupang Eats isn't alone in this race to satiate the global appetite for convenience without the cost. From Deliveroo Plus in the UK to Zomato Gold in India and DashPass in the US, food delivery behemoths are all boarding the subscription train. These programs, offering free delivery among other perks, are not just about keeping customers loyal; they're about redefining the food delivery experience. As Launika Raykar of Grubhub puts it, it's about making customers feel "Grubhub is the area to do it."
4️⃣ The Bigger Picture 🍽️
But why this sudden shift towards subscription-based models? The answer lies in consumer behavior. PYMNTS Intelligence highlights a significant barrier: 50% of non-users find delivery fees a deal-breaker. By scrapping these fees, Coupang Eats not only aims to convert skeptics but also to ensure the loyalty of its existing customer base. It's a clever move in a world where the convenience of on-demand delivery is increasingly non-negotiable. And for Coupang Eats, it's a step towards dominating the dining tables of Korea.
Will free delivery make you order more?
