[Rider Economy] "Is it true that delivery riders earn an annual salary of 100 million won?"

In Bad Weather, 'Professional Delivery Drivers' Show Their Skills
After Various Expenses, Monthly Earnings of 3 to 5 Million Won
Companies Compete to Attract Delivery Drivers
Efforts to Improve Image Including Free Lunchbox Delivery

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Mr. Lee, who has been working as a delivery driver in Gangdong-gu, Seoul for five years, worked over 11 hours on a rainy weekend. He said, "Dozens of delivery orders came in all at once, leaving no time to catch my breath." Although he had originally planned to take a day off, he couldn’t because of the rain. Snowy and rainy days are like ‘market days’ for full-time delivery drivers. While delivery orders increase, the number of casual riders or part-timers using kickboards or bicycles noticeably decreases. Veteran drivers like Mr. Lee, who have been active in one area for a long time, demonstrate their skills and move busily. He said, "I have accumulated know-how to the point where I can identify locations just by looking at the address," but added, "Riding a motorcycle on rainy days is inevitably dangerous."

"An annual salary of 100 million won? It’s possible if you deliver day and night"

While delivery drivers have become highly sought after, earning an ‘annual salary in the hundreds of millions of won’ is an extremely rare case, contrary to rumors. Mr. Lee said, "Only about 0.01% of delivery drivers earn an annual salary in the hundreds of millions of won," adding, "It might be possible if you deliver day and night without rest." Another delivery driver, Mr. Kang, said, "On days with harsh weather conditions, delivery companies run promotions that increase delivery fees to avoid missing orders," and added, "If it snowed or rained all year round, you could earn an annual salary in the hundreds of millions of won." He explained, "After deducting various costs such as motorcycle lease fees, repair costs, and insurance premiums, you take home about 3 to 5 million won per month," noting, "It’s similar to a regular office worker’s income, but considering the labor intensity and risks, it’s a tough job." A representative from a delivery agency said, "Among those entering the delivery business, there are some with poor credit," and added, "Cases of people working by reducing sleep because they urgently need money have been highlighted." Due to the nature of payment by commission per delivery, long working hours are inevitable. Delivery fees range from 3,000 to 5,000 won per order, and most payments are made weekly.

Companies Struggling to Recruit Delivery Drivers

The delivery industry is divided into delivery application companies such as Baedal Minjok, Coupang Eats, Yogiyo, and delivery agencies like Barogo, Vroong, and Saenggakdaero. Restaurant owners who receive food orders from consumers through delivery apps request driver pickups through delivery agency programs. Then, regional delivery agencies contracted with the delivery agency assign delivery tasks to drivers. It is estimated that there are 30 to 40 delivery agencies nationwide that have built delivery agency programs. Regional delivery agencies affiliated with delivery agencies number over 2,300 nationwide, including 960 for Barogo, 885 for Saenggakdaero, and about 500 for Vroong. Baedal Minjok directly recruits and operates some delivery drivers under the name ‘Baemin Riders,’ Yogiyo under ‘Yogiyo Express,’ and Coupang Eats under ‘Courier.’

Since delivery drivers can freely move between companies, each company uses various incentives. At one point, delivery app companies ran promotions raising delivery fees to 10,000 to 20,000 won per order, causing a cutthroat competition. Coupang Eats is running an event that gives a 50,000 won bonus if a delivery partner completes more than 10 deliveries within a week after signing up. The headquarters of the delivery agency Spidercraft has set up a caf? and rest area for delivery drivers where they can enjoy billiards, darts, and PC games. The service name includes the term ‘Hero Delivery’ to boost the drivers’ self-esteem and pride.

[Image source=Yonhap News]

‘Essential Workers,’ But Mutual Efforts to Improve Perceptions Needed

Last year, the government designated delivery drivers as ‘essential workers’ who provide core services to maintain the lives of the people and social functions. They have become indispensable in our society and industry overall. However, issues such as derogatory remarks, verbal abuse, and assault controversies against delivery drivers have also increased. Delivery driver Mr. Yoo said, "Many people view the delivery business negatively, but delivery drivers also need to change their mindset," adding, "While some work responsibly to support their families, there are others who behave unreasonably even from my perspective." He advised, "Mutual efforts are needed among delivery drivers, consumers, and franchise owners."

Community volunteer activities to improve the perception of delivery drivers are also underway. The Rider Union, a labor union for delivery workers, plans to volunteer by delivering 80 lunchboxes free of charge to 20 low-income households in Deokchon-dong, Gangseo-gu, once a month starting from the 20th. A Rider Union representative said, "We do not only pursue the rights of riders but also serve as members of the local community," adding, "Starting with lunchbox deliveries, we are planning projects for the community such as home repairs and support for elderly living alone, based on the belief that coexistence with customers and attention to marginalized groups are necessary."