Coupang Eats Free Delivery Fuels Dominance Concerns

Coupang Eats’ recent decision to temporarily offer **free delivery** to all users, extending a benefit previously exclusive to its Wow membership, has ignited significant controversy. Critics, including various civic and political organizations, are strongly pushing back, cautioning that **small merchants** on the platform will ultimately bear the financial burden.

The e-commerce giant announced last Thursday that all general users will now enjoy **free delivery on every order** through August. This expansive offer unlocks a premium service that was previously a key perk for subscribers to Coupang’s popular **Wow membership program**, aiming to broaden its user base in the highly competitive **Korean food delivery market**.

Coupang Eats publicly positioned this widespread **free delivery campaign** as a direct response to soaring inflation and rising fuel prices. The company also presented it as a strategic initiative to help **restaurants boost their business** and increase sales volume throughout the challenging summer season, thereby supporting its **partner merchants**.

“Our goal is to allow customers to significantly reduce their everyday cost-of-living burden,” stated a Coupang Eats representative. “Simultaneously, our dedicated **partner merchants** will gain unprecedented opportunities to expand their sales reach and order volume without incurring any additional operational expenses from this **delivery promotion**.”

However, this narrative has been sharply challenged by influential political and **civic groups**, who contend the platform is cleverly disguising an aggressive **market share acquisition strategy** under the guise of consumer relief. They argue that such moves intensify **platform competition** at the expense of others.

The Democratic Party of Korea’s Euljiro Committee, a vocal advocate for small businesses, explicitly dismissed the **free delivery** initiative as “nothing more than a **membership acquisition promotion** by a dominant platform operator.” They forcefully argued that the underlying costs of such promotions would inevitably be shifted and passed on to **small merchants** and, ultimately, to end consumers through other means.

Further amplifying these concerns, a coalition of five prominent **small business organizations**, including the Korea Merchant Association and the Korea Federation of Micro Enterprises, released a joint statement on Friday. Their warning highlighted that this policy risks subordinating consumers directly to powerful **delivery platforms** and fundamentally eroding the economic self-reliance of independent **small business owners** operating within the **food delivery ecosystem**.

“**Platform companies** have a well-documented history of externalizing marketing and promotional costs onto their **partner merchants**,” the joint statement elaborated. “This often occurs through mechanisms such as increased **commission rates**, higher **advertising fees**, or even reduced visibility and exposure on the platform itself.”

In response to this mounting criticism, **Coupang Eats** vigorously pushed back, reiterating its stance that the current **delivery promotion** imposes absolutely no additional financial burden on its affiliated **merchants**.

“This specific **free delivery promotion** was carefully designed to stimulate consumer spending and provide vital support for the entire **restaurant industry** during an economically challenging period marked by high inflation and elevated fuel prices,” the company clarified. “We assure our partners that all **delivery costs** directly associated with this campaign are entirely and solely covered by Coupang Eats. Our **partner merchants** will incur absolutely no additional expenses or fees as a result of this initiative.”

To substantiate its claims, Coupang Eats cited internal data from previous **free delivery initiatives**. This data allegedly demonstrated a reduction in merchants’ per-order costs by approximately 5 percent over the subsequent year, coupled with a substantial average sales increase of 98 percent year-on-year for participating stores. This data aims to highlight the potential for significant **merchant growth** through such **platform-funded promotions**.

Notably, this aggressive **delivery market strategy** unfolds as the **Korea Fair Trade Commission (KFTC)** is poised to intensely scrutinize Coupang Eats in the coming months. The KFTC is expected to examine serious allegations that the company has engaged in anti-competitive practices, specifically bundling **delivery and streaming services** within its **Wow membership program** and allegedly pressuring **merchants** to maintain identical or lower pricing compared to rival **food delivery platforms**.

Furthermore, this dynamic shift in the **Korean delivery market** occurs amidst surging speculation regarding the future of its primary rival, **Baemin**. Its German parent company, **Delivery Hero**, is reportedly exploring the sale of its highly successful Korean operator, **Woowa Brothers**. Such a transaction could dramatically reshape the competitive landscape, potentially granting **Coupang Eats** an even greater scope for market expansion and dominance as **competition in Korea’s delivery app sector** intensifies significantly.

Industry sources suggest that **Delivery Hero** might potentially offload the **Baemin platform** to a powerful consortium possibly formed by global giant **Uber** and Korean tech leader **Naver**, although no definitive deal has been confirmed. This speculation is fueled by Uber’s recent move to become Delivery Hero’s largest shareholder, significantly increasing its stake from approximately 7 percent to 19.5 percent of issued capital, and securing options to acquire an additional 5.6 percent, indicating a strategic interest in the broader **delivery market**.