Korean internet company Kakao, known for its chat app KakaoTalk, plans to jump into the food-delivery sector.

The Kakao food-delivery service is planned for launch by January, and it is expected to be incorporated into the app, which has four menu buttons. One of them lists extra services such as sending gifts or making reservations.

A Kakao spokesperson says the deliveries would mainly be from franchise restaurants.

In July, Kakao acquired a 20 per cent stake of CNT Tech, a developer of an order-receiving platform for more than 80 franchise restaurant brands in Korea.

CNT Tech has 90 per cent of market share in the ordering platform sector. Once an order is placed through a franchise’s key number or homepage, the start-up connects orders to stores nearest the customer.

Already companies are battling for share in the food-delivery market, including Baedal Minjok, Baedaltong and Yogiyo. Baedal Minjok, which has more than 50 per cent market share, is the only start-up that has turned around its business from losses.

Kakao head of communications Lee Su-jin says its new on-demand service will follow the company’s business perspective that an online-to-offline service should add value both to individual service providers and customers.
“Through our Kakao Taxi service, the annual income of taxi drivers rose by more than 3 million won [US$2650],” he says.