Gunsan's Public Food-Delivery Service: Local Innovation Going National
by UCLG ASPAC | Nov 26, 2020
FACING the pandemic, local government of Gunsan innovates to revive local economy. The city has been working on “Gunsan Sarang” (Gunsan Love) project that issues local currency namely Gunsan Sarang Gift Certificate. The goal is to ensure the money circulates locally and to help its recirculation in local area. Aiming to the same goal, Gunsan city has also launched ‘Master of Delivery’ (Baedal Myungsu), the country’s first public food-delivery application. Its effectiveness encourages local governments of other cities to replicate and even national level government.
The “Baedal Myeongsu (Master of Delivery)” is a delivery application that aims the same as the local currency. The application reduces fees charged by businesses and returns the benefits to citizens. It does not charge commission from business owners, nor advertising and subscription fees. This is definitely good news for local business because it does not operate like private food-delivery applications that easily change commission. The application is also connected to local currency so that citizens can enjoy discounted price when using it. The application offers win-win strategy for all Gunsan citizens including business owners and consumers.
Launched in March 2020, “The Master of Delivery” application rapidly gains popularity from the market. The number of subscribers surpassed 15,000 in the first week of the launch, and currently has 31,400 members. The average of its daily user increased by 2,000 and total amount of orders during the first month was more than 55 million KRW (49,636 USD). The payment ratio of mobile local currency gift certificates accounted for more than 65 percent. As of July 2020, the number of orders accumulated to 122,857, and revenue surpassed 3 billion in just four months.
Its effectiveness has attracted attentions. Local governments across the country also increased inquiries to benchmark the number of deliveries to Gunsan. Since then, Gunsan city has signed a business agreement with Gyeonggi-do Province, and is trying to establish mutual cooperation between local governments by introducing public delivery apps and exploring ways to develop them, including participation in discussions with the Incheon Metropolitan City Council and the National Assembly.
Local government of Gunsan is proud that the service app it has developed initially dedicated for Gunsan, now benefits the public beyond the area.