Seoul, South Korea – hy, formerly known as Yakult Korea, has been making significant strides in the South Korean market. Following its acquisition of Mesh Korea (now known as Bureung), a delivery service provider, in 2023, the company launched its delivery app, Knock, in June of the same year. This move marks a strategic shift for hy as it aims to become a comprehensive distribution company.
Differentiated Approach
Knock offers a unique proposition compared to existing delivery apps. The platform charges businesses a commission of 5.8% per order and a delivery fee of 2,500 won, significantly lower than competitors like Baemin Plus and Coupang Eats. Moreover, customers enjoy free delivery as long as they meet the minimum order amount.
One of Knock's standout features is its "Modo Bae-dal" service, which allows customers to order from multiple stores in a single order. This feature is particularly attractive as it enables customers to combine orders from different restaurants and enjoy free delivery.
hy is also leveraging the influence of popular influencers to promote its partner stores on the app. By creating content featuring these influencers visiting various establishments, hy aims to boost the visibility of these businesses.
Learning from the Success of Paldo Bibimyeon
hy’s history with Paldo Bibimyeon, a popular Korean cold noodle dish, provides valuable insights into the company's potential success with Knock. Despite facing stiff competition from established players in the instant noodle market, hy successfully positioned Paldo Bibimyeon as a household name. The company achieved this by leveraging its vast network of sales representatives, known as Fresh Managers, who played a crucial role in promoting the product directly to consumers.
Synergy Between Knock and Fresh Managers
hy plans to leverage the data collected through Knock to create a more efficient delivery network in collaboration with its Fresh Managers. With over 10,000 Fresh Managers nationwide, hy has a robust infrastructure for last-mile delivery. By integrating Knock with its online shopping platform, Predit, hy can offer a seamless shopping and delivery experience for consumers.
Industry Expectations
Industry experts believe that Knock has the potential to disrupt the South Korean delivery app market. The platform's competitive pricing, unique features, and the support of hy's extensive sales network are seen as significant advantages.
"Knock offers a fresh alternative for businesses that are dissatisfied with the current offerings in the market," said an industry analyst. "hy's ability to leverage its vast network of Fresh Managers and its focus on customer satisfaction could give it a significant edge.“
Looking Ahead
hy is optimistic about the future of Knock and is exploring opportunities to expand the service beyond Seoul's Gangseo District, where it is currently being piloted. The company is continuously seeking feedback from customers and businesses to refine its services and introduce new features.
With its differentiated approach and strong backing from hy, Knock is poised to become a major player in South Korea's rapidly growing delivery app market.
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