[Rider Economy] "Accident on Road Under Construction... District Office Compensates Only 80%"

Agency Owner: "Delivery Workers Are Free Spirits"
Poor and Dangerous Working Conditions... Double the Industrial Accident Claims
Accident Exposure Due to 'Designated Lane System' Driving in Right Lane
Biological Law Enforced in July... Introduction of 'Excellent Operator' Certification

"They move around to the areas they want or suddenly leave following friends. Even unauthorized absences are tolerated. Since there are not enough hands and a lot of work, it can't be helped."

Lee Chang-hoon (alias), who runs a local delivery agency in Geumcheon-gu, Seoul, calls delivery drivers "free spirits." With 10 years of experience in the quick service industry, Lee entered the delivery agency business at the end of last year. He promotes his service by handing out business cards to restaurants (franchisees) that connect delivery orders and recruits delivery drivers. He had 30 delivery drivers, but within six months, eight resigned. Delivery drivers are platform workers and special-type workers who sign consignment contracts rather than employment contracts and receive pay in the form of per-delivery commissions. Their commuting is more flexible than regular workers, and they can adjust their workload themselves. Contract termination (resignation) and job changes are also relatively free. Lee said, "It's hard to prevent them from moving to companies that pay higher delivery fees. With the surge in delivery orders due to COVID-19, they have become 'precious assets.'"

Free bodies but... hazardous working conditions

As the delivery market rapidly expands, the value of delivery drivers has increased, but their labor environment remains dangerous and poor, falling into a safety blind spot.

According to data submitted by the Korea Workers' Compensation and Welfare Service to Kim Ju-young, a member of the Democratic Party of Korea, the number of industrial accident claims filed by platform delivery drivers doubled last year to 1,047 cases from 570 the previous year. The number of delivery drivers who died from industrial accidents last year was 11, also double the previous year's 6.

Most delivery drivers subscribe to insurance that covers liability and treatment obligations toward others when accidents occur, but often do not subscribe to insurance covering their own treatment because premiums rise significantly. Lee said, "Delivery drivers pay about 4 to 6 million KRW annually for insurance," adding, "The younger they are or the more accident experience they have, the higher the premiums."

There are also criticisms about excessive workloads to the point that drivers cannot even go to the restroom. The AI dispatch system of the delivery app Yogiyo is a representative example. However, Yogiyo stated that since its parent company, the German Delivery Hero (DH), is undergoing a sale process, it cannot actively address the demands of delivery drivers.

[Image source=Yonhap News]

"Driving in the right lane? ... How do we make left turns?"

Seo (surname), who is the branch manager of a delivery agency, criticized road conditions that make it difficult for two-wheeled vehicles to drive. He said, "There was a delivery driver who fell on a road under construction and couldn't work for two weeks," adding, "When we requested compensation from the district office, they said we had to cover 20% of the damage ourselves." He also said, "When inevitably entering no-entry zones for two-wheeled vehicles, a motorcycle turnaround area for detours is also necessary."

Among delivery drivers, complaints about the designated lane system for two-wheeled vehicles continue, with comments like "Are motorcycles only allowed to turn right?" In October last year, 370 motorcycle drivers, including delivery drivers, filed a constitutional complaint with the Constitutional Court, arguing that the designated lane system infringes on their right to life and pursuit of happiness. The designated lane system requires motorcycles to drive in the outermost (right) lane of the road.

However, driving in the right lane together with large trucks and buses makes it difficult to secure visibility, and when making left turns, drivers must cross the road, posing risks to other drivers. Especially, motorcycles in the 1970s when the designated lane system was established were mostly low-speed vehicles under 100cc, but now they run faster than cars, making the regulation unreasonable and outdated, according to the drivers. A police agency official said, "We understand the practical difficulties of delivery drivers, but we are not relaxing or reviewing the current legal regulations."

Legislative amendment proposed to block delivery drivers with sex crime records

Local delivery agency officials unanimously say, "Above all, we hope the delivery agency programs operate stably." Because the moment an error occurs in the delivery agency program that picks up and delivers ordered food, all members of the delivery ecosystem?consumers, restaurant owners, and delivery drivers?suffer damage. Another local delivery agency operator, Kim (surname), switched from delivery agency program A to B two years ago. He said, "We sometimes change programs depending on service and quality," adding, "When program errors occurred, B responded relatively quickly and kindly."

Currently, the delivery agency business is a 'free business' that anyone can start. Because of this, unqualified delivery agencies have proliferated, causing deterioration in delivery drivers' working conditions. According to the Ministry of Land, Infrastructure and Transport, about 30 to 40 delivery agencies of various sizes operate nationwide. The government plans to introduce a certification system for excellent operators through the Living Logistics Service Industry Development Act (Saengmul Act), which will be implemented from July, and establish a mutual aid association to reduce insurance premium burdens for delivery drivers centered on excellent operators.

A legislative amendment to the Saengmul Act has also been submitted to the National Assembly to prevent individuals with records of sex crimes or other serious offenses from being employed as delivery drivers. The Korea Startup Forum expressed agreement with the amendment's intent, considering the nature of delivery workers' duties and fairness with parcel delivery workers.