Naver, a distant second in Korea's e-commerce market, has received a boost through strategic alliances it has struck with premium-grocery platform Kurly and Uber delivery service to stay in the competition versus dominant local player Coupang and fast-rising Chinese entrants.
According to Mobile Index, Naver's shopping app, Naver Plus Store, saw its monthly active users (MAU) rise to 3.86 million last month, snapping a two-month decline, timed with its tie-up with Kurly, which handles fresh food platform Market Kurly.
This month, Naver launched 'KurlyN Mart' in partnership with Kurly, integrating it with Naver Plus Membership. Members can receive free next-day delivery on fresh food orders over 20,000 won. Weekly active users (WAU) have surged from 2.3 million to 2.81 million in three weeks.
Naver's alliances extend to mobility, with Uber's subscription service, Uber One, now part of Naver Plus Membership. Members earn 5-10% credit on Uber rides, aiming to unify shopping and transportation under one membership.
To counter overnight "rocket delivery" service of Coupang and low-price strategy of AliExpress, Naver has chosen strategic partnership on premium brands. "We prefer strategic partnerships over handling basic groceries ourselves, which allows us to seek growth efficiently," said Lee Yoon-sook, head of Naver Shopping.
Naver recently acquired Kurly shares worth 50-60 billion won. "Membership users are responding well, and with the Chuseok holiday approaching, we expect more users to shop, especially with available overnight delivery," a Naver official said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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