O2O is becoming a common terminology to the public. Especially, young people use diverse on-demand apps to order food and call a taxi. Mega players in this industry are trying to raise funds for aggressive marketing and daily operation as competition is becoming more fierce with new players entering the market. Most O2O startups are not likely to focus on how to make money from their business. However, it is required for them to ponder over these models as early as possible once they obtain sufficient customers. It is very naive to think that they will earn revenue based on advertisement platform. When it comes to sustainability, doing business without revenue stream will put its business model in peril. Specifically, digital wallet services have been trying to merge credit/debit cards and membership points into their integrated digital channel without thinking of monetization. However, the current model they have shows its limit as a business model. There is only penny and nickel from a huge number of customer base.
The more feasible and easier way of making revenue can be siphoned off from B2B partners. Some models can work well if they charge fees to customers as Instacart did. Other countries such as China and South Korea have more competitive market status, and thus, they are hesitant to charge fees for food delivery service. Instead, they earn charged fees from restaurants in the name of marketing commission. However, Baedal Minjok, the number one food delivery app in Korea, pronounced to go free of commission and it ignited commission free competition. As a result, Yogiyo, the main competitor of Baedal Minjok, jumped into the free race to match up with Baedal Minjok. So which candidates can become a new revenue source?
Most of all, all-in-one service is one of the easiest ways that they can try. Yogiyo has been providing delivery food related items such as disposable chopsticks and spoons to its restaurants. Yogiyo can get price competitiveness by leveraging its wide partnership. This kind of business relation strengthens tie-up between a platform company and its B2B customers, resulting in competitive edge in terms of customer base.
Yogiyo’s disposable items for delivery food 
One-trick pony cannot survive in O2O market. O2O startups need to nimbly change their shape and aggressively expand its outer area to converge on other areas. Synergy model based on partnership can be a new opportunity to be differentiated from other market entrants as well as to obtain additional revenue stream. Baedal Minjok partnered with Ddingdong, a courier service in Korea, to provide more sophisticated delivery service, which is focused on popular Gangnam restaurants. Also, Socar, the largest car-sharing service in Korea, is providing a self-moving service to single residents in association with Zimcar, the moving service provider.
Ddingdong restaurant guide distributed by Baedal Minjok
Collaboration between Socar and Zimcar
