This study aims to examine the limitations arising from the marketization of social services and to explore the effectiveness of cooperatives as a social service delivery system. The current market-driven social services diminish the quality of publicness, while resulting in expansion of for-profit organizations, the individualization of service users and the increase of low quality jobs. Cooperatives would resolve these problems, by strengthening the sustainability of social services based on the trust and cooperation of local community members. Furthermore, cooperatives can supply social services that neither state nor market provide and improve their quality by allowing service users to participate in delivering social services. Finally, Cooperatives, especially social cooperatives, will create decent work with living wage for workers and contribute to enhancing social integration for the vulnerable.