How Baemin Works: Guide to Its Solid Footsteps in the South Korean Food Delivery Market
The online food delivery sector is exploding by the hour as people’s inclination towards comfort has been increasing. More and more businesses are making an entry into this business model because it has the potential to offer maximum return with minimum investments. The online food delivery service is no more obscure, with the advancement in technology and changing business dynamics, the online food delivery market is all set to cross $161.74 billion by 2023, and the South Korean food delivery market is not left behind in the race as Baemin, a popular food delivery app has gained huge momentum in a short time. In this blog post, we will have an understanding of Baemin, how the app works, its business and revenue model, so let’s get started.
Earlier, the restaurant industry was vague, people were only conscious about dine-in and food quality but penetration of technologies such as online ordering, social media, takeaways, etc. has transformed the restaurant industry from its roots. Restaurants today have turned into a competition of doorstep deliveries, which has only been possible due to the well-known players in the food delivery market.
Besides, people’s preferences are also changing with time and the introduction of new technology, the online food delivery sector is growing and the trend will not be fed as soon as the domain is getting persistent attraction. Here we are going to talk about South Korea’s food delivery market and how Baemin has become a brand name in the South Korean food delivery market. Here we go.
What is Baemin
Baemin is an online food delivery service that allows customers to order food from restaurants in their vicinity. In simple words, the Baemin marketplace offered a seamless experience for the customers by partnering with top restaurants on their app and website. Using this, customers can check online reviews, browse the menu, and place an order without any hurdle.
Intriguing Facts and Figures About Baemin
Founder: Kim Bongjin
Founded in: 2010
Headquarter: Seoul, South Korea
Area Served: South Korea
Revenue: $960 million in 2020
- In the year 2014, the company received a $35.6million investment from Goldman Sachs, and later in 2018, the company received $320 million of investment from the same investor.
- In the same year, the company has also started an app-based chicken delivery business, and now most of the restaurants using Baemin to taking orders through Baemin was reached 6.8 trillion last year as most local Korean restaurants use the
- Baemin The food delivery market in South Korea is $5.9 billion- double since 2014 and more than the US and UK, according to Euromonitor.
- In June 2019, the company expanded its operation in Vietnam.
- The number of transactions by restaurant companies that, the South Korean food delivery market is bigger than Japan and Germany and it is projected that the market will soon cross $9 billion by 2023 as more and more restaurants use Baemin app to deliver food to customers.
- Recently, Bloomberg has reported that Baemin was acquired by well-known food delivery player, Delivery Hero for $4billion with an 87% stake in the company.
How Does Baemin Work
Like any other delivery apps, Baemin follows the same footsteps as customers can order food from an extensive range of restaurants in South Korea. The company has tied up with restaurants, ranging from small to medium to big. As food preparation is handled by restaurants, Baemin here works as a mediator and connects customers and restaurants. Here’s a five-step model that helps you understand the working of Baemin even better,
Step 1 Browse
Customers can browse and choose restaurants based on their preferences, they can also search restaurants by their name or use filters such as dish name.
Step 2 Place Order
Customers can add selected cuisines to the cart, place an order, and make payments. However, they can also opt for cash payment.
Step 3 Order Preparing and Pick Up
The restaurant receives the order, starts preparing for it, and assigns a nearby delivery provider to pick up the order. The delivery provider can accept or reject a request.
Step 4 Delivery
The delivery provider collects the package from the restaurant and delivers the food to the customer. Here delivery providers use the Baemin app for drivers to deliver the food to the customer’s location.
Step 5 Review and Ratings
After the food delivery, customers can rate the service and submit feedback depending on the food quality and overall service.
Baemin Business Model: Baemin’s Two-sided Marketplace Explained
Baemin offers an excellent value proposition to not just customers but also restaurants. Here we are talking about its business model, so let’s see how Baemin offers an amazing value proposition to both customers and restaurants.
- Dedicated customer service
- Customers can order food online and save time and money
- Customers are provided a range of different restaurants from where they willing to order
- Real-time tracking allows customers to track their orders after placing an order.
- Baemin aids restaurants in expanding their customer base.
- The company offers an amazing technological setup to manage their orders and deliveries.
- Baemin also has its own delivery providers so restaurants no longer need to worry about the delivery process.
Baemin’s business model serves as a two-way marketplace for the restaurants and for the customers. So this online food delivery is providing a major segmentation for customers and restaurants.
- People who want to enjoy food from different restaurants.
- People who want doorstep delivery for their food.
- People who don’t want to cook food on their own.
- Restaurants that don’t have a delivery person to fulfill orders at doorsteps.
- Restaurants want to expand their customer base by taking advantage of Baemin’s popularity.
- Restaurants that want to get more online orders.
Baemin’s Revenue Model: Take a Closer Look at Revenue Streams
If you wish to know how Baemin generates revenue and becomes a popular unicorn in the South Korean food delivery market, then you need to understand some of the major sources of its revenue model. Let’s have a quick look at them.
Commission on Order
Baemin is committed to delivering food at the customer’s location. Customers order food online from their favorite restaurant and Baemin takes a certain percentage on each order. This percentage fluctuates from 3% to 15%.
Baemin charges a delivery fee from its customers. Based on the distance of the restaurant to the customer’s location, Baemin charges delivery fees.
Additional Income Generated from Advertising
Baemin has also a unique pricing model for the restaurants willing to list at the top and increase order value. Baemin gets commission from restaurants to list them at the top of the customer searches.
Expand Your Restaurant Business with Baemin Clone without Burning Holes in Pocket
It is really fascinating how the wide scope of the Internet and smartphones have changed people’s lifestyles. Business owners take advantage of this mindset and invest in-app solutions that increase their revenue and brand awareness. As technology and people’s preferences change, online presence has become dominant for your restaurant business.
As we saw earlier, the online food delivery market is skyrocketing and South Korea is giving tough competition to China and Germany. If you want to become a valuable part of this growing market, investing in the Baemin clone app solution could be the wise decision you can ever make.
The percentage of users who use an Baemin clone app for food ordering ups each day and restaurants just like eCommerce brands also want to deliver personalized customer experience to customers. Therefore, here we would like to share some of the exclusive benefits of having an app similar to Baemin for your restaurant business. So let’s throw some light on real benefits,
- Customer convenience
- Increase in sales and revenue
- Brings repeat business
- Foster brand awareness
- Improve your service
- Improved reviews on search engines
Now, you know why your restaurant business needs a Baemin clone app, integrating all the modern features such as real-time tracking, payment gateways, smart search, push notifications, social login options, etc. for a better customer experience. Now the next step is to find a skilled technology partner such as Elluminati Inc, build your advanced app like Baemin today to reap attractive benefits.
How Much Does it Cost to Build An App Like Baemin
When a smartphone user wants to order food online following a couple of clicks, it is natural for restaurants to have their own app like Baemin as it has become a promising way for them to fulfill the needs of modern customers. Telling accurate cost of Baemin close is tough as the cost depends on the following factors:
- App features
- App platform
- UI/UX elements
- App size
- Development company’s location
If you are planning to develop an app like Baemin, you should first understand the process, the technologies it consists of, and much more. If you don’t intend to develop the app from scratch, you can also opt for ready-made solutions as it costs less and makes the deployment process speedy.
If you want to get a detailed quote, get in touch with us, we will help you build and launch a superior app that will take your business to another level.
Developing an App Like Baemin Opens Door to a Huge Growing Market
Delivery apps have grown in popularity recently due to the “convenience”. If you are engaged with the restaurant business and looking for ways to automate it with smart solutions, investing in an app like Baemin can be a savior as it can gain you maximum returns while spending less.