Ubereats is bravely penetrating an already saturated food delivery market in Korea. Worth an USD $15 billion, Korea’s food delivery market is dominated by strong local businesses. Ubereats is vying for a slice of the app based delivery pie which is currently worth USD $4.5 billion.
The US based tech giant is providing several differentiated services to attract users. Recognising that domestic food delivery apps often enforce a minimum spend which is a major deterrent for many users, Ubereats offers no minimum spend. This is expected to capture the rising number of single or two people households as well as busy office workers.
Ubereats has also waived delivery fees for limited time to get users hooked on the app. When the free period is over, the delivery fee will be slightly higher than domestic brands, but Ubereasts is confident that with its faster service and user friendly delivery GPS software, customers will be happy to pay premium.
Ubereats is busy forming strategic alliances with accommodation apps to take advantage of the rising trend of people ordering food from their hotel rooms.