[The Public = Daniel Park] Korea is a country in the world where various delivery services and food delivery services are uniquely developed. The entire process of ordering and delivery is simple and quick, and delivery is supported for all items that are considered difficult to deliver in other countries. As a result, Koreans who are familiar with delivery service culture and delivery people jokingly associate it with delivery of the items below, calling themselves “our nation is a nation of delivery”. Among the popular smartphone food delivery apps, there is also an app called "Baedal Minjok" that quotes this joke.
Delivery agency is a business that is rapidly developing mainly in large cities in Korea. It is a 'delivery brokerage service' business that replaces the delivery service of restaurants and charges monthly membership fees and delivery fees from affiliated stores and pays them to the agent.
For restaurants that did not provide delivery services such as small businesses or small franchises, it is better to use an agency rather than hiring a delivery driver. Delivery agency is gaining popularity because it is free from liability for accidents. Delivery agency platforms also have low entry barriers, which is why there are many start-ups and closures.
Following the continuous growth of the delivery app market, the delivery market has exploded due to COVID-19, and the delivery agency market is also expanding.
As delivery companies introduce a new delivery rate system, there is a lot of resentment among the self-employed and citizens that the cost of delivery has increased as well as the price increase. The delivery company said that it stopped the promotional price, which suffered a loss rather than a rate increase, and that this rate plan is also the lowest in the industry.
On the 22nd, Baedal Minjok actually raised the delivery fee by introducing a new delivery rate system for 'Baemin 1', a single delivery service. Three rate systems have been reorganized: 'basic', 'delivery cost saving' for low unit price menus, and 'integrated' that combines brokerage fee and delivery fee.
In the case of the basic rate plan, it is estimated that the delivery fee has risen by more than 1000 won from before. The 'Baemin 1' service, introduced in June, originally received a commission of 1000 won and a delivery fee of 5000 won per case. The brokerage fee is borne only by the self-employed, and the delivery fee is shared with customers according to the ratio set by the self-employed. The brokerage fee of the introduced basic rate system is 6.8% of the price of food, 6000 won for delivery, and 1000 won for delivery. The higher the price of food, the higher the brokerage fee.
Previously, Coupang Eats also reorganized the delivery brokerage fee, which was a flat rate of 1000 won in February, into four fixed-rate systems (9.8-27%) depending on the delivery fee. The most commonly used 'common type' has a brokerage fee of 9.8% and a delivery fee of 5400 won. Like Baedal Minjok, the higher the unit selling price at the franchise, the higher the commission.
Mr.Kang (52), who runs a restaurant in Yeongdeungpo-gu, Seoul, said, "If you sell a 11,000-won lunch box, you have only 3000-4000 won left after deducting labor, materials, and delivery charges." However, the 1000 won increase in the delivery fee is too much for me," he sighed.
Choi, 32, who runs a cafe in Mapo-gu, Seoul, said, "In the past, I paid 2000 won for delivery and the customer paid 3000 won for delivery, but I often heard from customers that 'I have two cups of coffee, but the delivery fee is expensive'." It is natural to pay an additional 1000 won for delivery, and since brokerage fees may be additional depending on the price of food, you should consider raising the price, but it is difficult because you can lose regular customers."
There is also concern that the burden of the increased delivery fee will be passed on to consumers. Kim (28), a resident of Seodaemun-gu, said, "As the price of food rises, the price of food rises by 1000 won and 2000 won, so he hesitates several times before delivering it?"
Jeongmo (34), a resident of Mapo-gu, also said, "If the delivery cost rises, the bosses will of course raise the price of food, but I think that the burden of the increase in the delivery cost is ultimately passed on to the consumer. We have no choice but to reduce the
In this regard, according to a policy report released by the Seoul Research Institute on the 28th, the actual food delivery fee that Seoul citizens think is reasonable is around 2000 won. As a result of a survey conducted by the Seoul Research Institute on 'Delivery Service Usage Status' of 1200 households in Seoul, 57.3% of the respondents chose 2000 won or less as an appropriate delivery fee. The highest possible delivery fee was an average of 3608 won.
Baedal Minjok said that it is not a rate increase, but a return to the existing rate, which is also the lowest delivery rate in the industry. An official from Baedal Minjok said, "When Baemin 1 service started in June, it was operated at a promotional price rather than the original delivery price. We decided that operating at a loss was no longer possible, so we stopped the promotion.”
He continued, "When we started Baemin 1 service, the first contract price was 'brokerage commission 12% of the food price, delivery fee 6000 won. Compared to the global delivery market, it is the lowest level in the industry,” he added.
[Image by Pixabay]
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