April 19, 2024

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[THE INVESTOR] US ride-hailing service provider Uber is gearing up to launch its restaurant delivery app UberEats in Korea soon as it eyes to take a slice of the country’s food delivery market. 

Industry sources expect the service will go live as early as August, as its operator Uber Korea is speeding up partnerships with premium restaurants in Seoul. Popular restaurants located in Garosu-gil and Itaewon are on board, as well as up-and-coming and less-known outlets. 

“We haven‘t decided on the exact date, but it will be within the year,” a Uber Korea spokesperson told The Investor. 

In preparation, Uber Korea has been actively recruiting delivery partners for UberEats. Earlier this month, Uber Korea held an information session in Seoul to educate the staff ahead of the launch. Delivery partners will receive a flat rate for every delivery, plus extras depending on the distance traveled. The exact rate being offered is still under wraps. 

Anyone can sign up to become a delivery partner with UberEats, using the transportation of their choice. Uber Korea recently partnered with local bicycle manufacturer Alton Sports to provide discounts for delivery partners purchasing Alton Sports electric bicycles for work. 

UberEats is expected to heat up competition in the nation’s food delivery market that’s already crowded with established apps such as YoGiYo, FoodFly and Baedal Minjok, as well as restaurants offering free delivery services. Annually, the food delivery app market is estimated at around 12 trillion won (US$10.68 billion). 

UberEats first emerged as a pilot project in 2014 in Los Angeles. Since then it rolled out a standalone app in Toronto in 2015 and expanded to 100 cities in 27 countries around the world. In Asia, the platform is available in Singapore, Tokyo, Bangkok and Hong Kong, among others. 

Valued at nearly US$70 billion, Uber operates in over 80 countries and nearly 600 cities around the world. But it hasn’t had much luck in Korea due to regulatory hurdles. The firm entered the country in 2013 with its car-sharing service UberX. But operations were halted two years later following stiff resistance from taxi drivers and Seoul City government. In March, the prosecutors issued a 10 million won (US$8,863) fine for violating local transportation laws. 

Uber attempted a comeback last year by launching UberBlack, a premium taxi-hailing service, for specific areas in Seoul. But due to fares that are higher than regular cabs, it has a bumpy ride ahead in a country dominated by KakaoTaxi, a taxi-hailing app launched by tech giant Kakao in partnership with local taxi drivers.

By Ahn Sung-mi (sahn@heraldcorp.com)