Korea's Delivery Apps Turn to AI to Predict Arrival Times

AI for efficiency is one thing, but this is about customer retention in a cutthroat market. Baemin's 1.7-fold accuracy improvement over manual estimates directly addresses a key customer pain point. Coupang Eats' coordinate optimization similarly tackles rider frustration and late deliveries. This is a defensive play against churn, not just an innovation push.

South Korea's delivery market shows intense competition, with Baemin's monthly active users at 24.4 million and Coupang Eats growing 23.0% to 14.44 million. This AI investment reflects a battle for repeat business. Companies like Grab in Southeast Asia, facing similar competitive pressures, will watch these developments closely. The focus on reducing delivery uncertainty could become a regional benchmark for customer satisfaction.

The thing to watch is whether these AI improvements translate into sustained user growth and market share shifts. Baemin's 5.8% user growth lags Coupang Eats' 23.0% increase over the past year. If Baemin's AI system significantly closes this gap by early 2027, it will validate the investment. Otherwise, it is just table stakes for competition.