Yogiyo’s Gamble with Mukbang Star Tzuyang: A Sign of Things to Come in the Food Delivery Wars?
The South Korean food delivery app, Yogiyo, is making headlines thanks to a collaboration with popular mukbang (eating broadcast) YouTuber Tzuyang. Her recent video showcasing a massive ₩800,000 (approximately $60 USD) food order and the resulting ₩56,000+ (approximately $42 USD) in points earned has sparked significant buzz. But this isn’t just about a viral video; it’s a strategic move in a fiercely competitive market facing user attrition and the rise of new players.
The Rise of Loyalty Programs and “Infinite Rewards”
Yogiyo’s “Infinite Rewards” program, launched recently, is at the heart of this strategy. Offering 1% rewards for standard users and up to 10% for Yogiyo Pass X subscribers, the program aims to incentivize frequent ordering. This isn’t unique; loyalty programs are becoming increasingly crucial in the food delivery space. DoorDash, Uber Eats, and others have similar systems, but Yogiyo’s simplicity – no caps, no tiers – is a key differentiator. Early results are promising: Yogiyo Pass X subscriptions have jumped 60% and app installs are up 14% since the program’s launch. Point redemption is up over 500%.
This trend reflects a broader shift in consumer behavior. Customers are no longer solely focused on the lowest delivery fee; they’re seeking value and rewards. A recent study by McKinsey & Company found that 70% of consumers are more loyal to brands that offer personalized rewards. The “Infinite Rewards” program taps into this desire, making every order feel more worthwhile.
Mukbang’s Influence: Beyond Entertainment
Yogiyo’s partnership with Tzuyang is a masterclass in influencer marketing. Mukbang isn’t just entertainment; it’s a powerful form of social proof. Tzuyang’s 160,000+ views on the Yogiyo video demonstrate the reach and influence these creators wield. Her demonstration of the rewards program in action is far more compelling than any traditional advertisement.
Pro Tip: Food delivery apps are increasingly leveraging micro-influencers – creators with smaller, highly engaged audiences – to target specific demographics and geographic areas. This can be a more cost-effective and authentic approach than relying solely on celebrity endorsements.
Yogiyo’s Struggle and the Broader Market Landscape
The collaboration isn’t simply about growth; it’s about survival. Yogiyo has been losing ground to rivals Baedal Minjok (Delivery Hero Korea) and Coupang Eats. Yogiyo experienced a decline in monthly active users (MAU) of 700,000 last year, while its competitors thrived. The emergence of public delivery apps adds another layer of competition, threatening Yogiyo’s third-place position.
The Korean market mirrors a global trend: consolidation in the food delivery industry. Companies are battling for market share through aggressive promotions, loyalty programs, and strategic partnerships. The focus is shifting from simply acquiring customers to retaining them and increasing order frequency.
Future Trends: What’s Next for Food Delivery?
Several key trends are shaping the future of food delivery:
- Hyper-Personalization: Expect more tailored recommendations, promotions, and rewards based on individual preferences and ordering history.
- Grocery Integration: The lines between restaurant delivery and grocery shopping are blurring, as demonstrated by Yogiyo’s ability to use points for grocery orders. This trend will accelerate.
- Dark Kitchens & Virtual Restaurants: These delivery-only kitchens will become more prevalent, allowing restaurants to expand their reach without the overhead of a traditional brick-and-mortar location.
- Sustainable Delivery: Consumers are increasingly concerned about the environmental impact of delivery. Expect to see more apps offering eco-friendly packaging and delivery options (e.g., electric vehicles, bicycle couriers).
- AI-Powered Logistics: Artificial intelligence will play a larger role in optimizing delivery routes, predicting demand, and managing driver assignments.
Did you know? The global online food delivery market is projected to reach $223.7 billion by 2027, according to Statista.
FAQ
- What is Yogiyo’s “Infinite Rewards” program? It’s a loyalty program that gives users a percentage of their order value back as points, which can be used for future purchases.
- How much can Yogiyo Pass X subscribers earn in rewards? Subscribers earn 5% back on all orders, with potential for up to 10% with certain promotions.
- Is mukbang still relevant for marketing? Absolutely. Mukbang creators have a highly engaged audience and can effectively demonstrate the value of products and services.
- What are dark kitchens? Commercial kitchens built solely to prepare food for delivery, without a traditional storefront.
This strategic pivot by Yogiyo, fueled by a savvy influencer partnership and a compelling loyalty program, signals a turning point in the Korean food delivery landscape. The battle for market share will continue, but the focus will undoubtedly remain on rewarding customers and providing a seamless, personalized experience.
