Rapidly Growing Shinhan Bank 'Ttaenggyeoyo'... Can It Catch Up with Baemin?

[Financial News] Shinhan Bank's co-prosperity delivery app 'Ttaenggyeoyo' is shaking up the delivery app market. With the lowest commission fees and discounts linked to local currency as its weapons, it is rapidly growing, and there is attention on whether it can become a 'catfish' breaking the stronghold of Baedal Minjok (Baemin) and Coupang Eats. 
According to Shinhan Bank on the 13th, as of the 8th, Ttaenggyeoyo's membership count was 5,383,800, and the number of registered merchants was 244,000. After surpassing 5 million members in May this year, it has shown steep growth, increasing by nearly 400,000 in just over a month. 
Ttaenggyeoyo is a public-private partnership delivery application (app) introduced by Shinhan Bank in January 2022. It offers various benefits such as low brokerage fees, fast settlement services, 1.5% savings on usage amounts, and the possibility to use local love gift certificates, aiming for 'co-prosperity' with small business owners. 
In particular, it is actively supporting local small business owners by partnering with local governments. Since its launch, Ttaenggyeoyo has signed agreements with a total of 34 local governments, expanding its reach to various regions including Gwangju Metropolitan City, Daejeon Metropolitan City, Jeollanam-do, and Chungcheongnam-do, beyond the capital area. In Gwangju, after the agreement, the number of merchants increased by 298%, and the order reception amount surged by 2376%. 
Kim Hyunseong, former representative of the Gwangju Economic Promotion Co-prosperity Job Foundation, said, "Many public delivery apps of a similar nature have failed in the past, but Ttaenggyeoyo is successfully settling in," emphasizing that "more government support is needed for it to play the role of a 'catfish' in the delivery app market." 
Shinhan Bank, riding on the success of Ttaenggyeoyo, is also launching its own delivery service 'Ttaeng Delivery'. Starting from the 30th, it will begin pilot operations targeting △Jung-gu and Jongno-gu in Seoul △Siheung-si and Seongnam-si in Gyeonggi △Namdong-gu in Incheon.
Ttaeng Delivery is a self-delivery method, unlike existing store deliveries. Unlike store deliveries where the store owner contracts directly with a delivery agency, the delivery app operator manages 'consumer-merchant-delivery' in an integrated manner. Shinhan Bank plans to operate the service through collaboration with the delivery agency Barogo. 
As the new government has declared its intention to overhaul the current delivery app market, including the introduction of a 'delivery platform commission cap', Ttaenggyeoyo's presence is expected to grow even larger. The delivery app market is a monopoly market where industry leaders Baemin and Coupang Eats occupy more than 80% of the market. The government is working to revitalize public delivery apps with the goal of increasing the number of 'players' in the market to expand store owners' choices. 
Self-employed people are also looking forward to the era of public apps including Ttaenggyeoyo. Mr. Kang, who runs a Japanese restaurant in Gwangju, said, "The commission fees of Baedal Minjok or Coupang Eats are too high, so using them doesn't make much sense for profits," adding, "After using Ttaenggyeoyo, the commission burden has significantly decreased. I hope public apps become more active." 
zoom@fnnews.com Lee Jumi Reporter