Korean retail firm Hy to venture into food delivery service

(Source: Korea Bizwire)

Hy, a South Korean retail company, is set to venture into the food delivery app market next month with the launch of its new platform, Knowk.

According to food industry sources on May 20, Hy plans to introduce Knowk sometime in June.

Ahead of the app’s debut, the company is actively recruiting restaurant partners with the slogan, “Restaurant owners, just prepare the food. Hy Knowk will take care of promoting your business.”

Hy’s core value is “collaborating with local businesses,” aiming to minimise the platform usage costs for restaurant owners. Consequently, the company has decided not to charge fixed fees, advertising costs, or registration fees to its partner establishments.

The commission rate for restaurants will be set at an industry-low of 5.8 per cent.

Aligning with the major delivery apps like Baedal Minjok, Coupang Eats, and Yogiyo, which currently offer free deliveries, Hy will also provide free delivery services to customers, without imposing minimum order requirements.

Through the Knowk app, Hy plans to leverage its network of over 11,000 “Fresh Managers” to recommend and introduce popular eateries.

The launch of the delivery app is part of Hy’s efforts to transform into a comprehensive distribution company.

Last April, Hy acquired Meshkorea, the operator of the Vroong delivery app, for US$58.5 million With this acquisition, Hy secured a 66.7 per cent stake in Meshkorea, becoming its largest shareholder.

At the time of the acquisition, Hy stated its intention to integrate Meshkorea’s logistics system with its own services to enhance competitiveness and create a new business model that leverages synergies between the two companies.

This story was originally published by Ashley Song, via Korea Bizwire.

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