South Korean retail giant Hy is making strides into the food delivery realm, slated to debut its new platform, Knowk, next month.
According to sources within the food industry, Hy is gearing up to unveil Knowk in June, marking its entry into the competitive food delivery app market.
Ahead of the platform’s launch, the company is actively courting restaurant partnerships with the enticing promise, “Restaurant owners, just prepare the food. Hy Knowk will take care of promoting your business.”
At the core of Hy’s strategy is a commitment to fostering collaboration with local businesses, aimed at reducing platform usage costs for restaurant owners. As part of this initiative, Hy has opted not to levy fixed fees, advertising costs, or registration fees on its partner establishments.
In a move to further entice restaurants, Hy has set its commission rate at an industry-low of 5.8 percent.
In line with leading delivery apps such as Baedal Minjok, Coupang Eats, and Yogiyo, which presently offer complimentary deliveries, Hy will also provide free delivery services to customers, foregoing any minimum order requirements.
Through the Knowk app, Hy plans to leverage its extensive network of over 11,000 “Fresh Managers” to curate and showcase popular eateries to users.
The rollout of the delivery app forms a crucial part of Hy’s broader strategy to evolve into a comprehensive distribution company.
Hy’s foray into food delivery gained momentum last April with its acquisition of Meshkorea, the operator of the Vroong delivery app, for a sum of US$58.5 million. This acquisition conferred upon Hy a controlling 66.7 percent stake in Meshkorea, establishing it as the largest shareholder.
At the time of the acquisition, Hy articulated its intention to integrate Meshkorea’s logistics system with its existing services, aiming to bolster competitiveness and forge a novel business model that capitalizes on synergies between the two entities.
