[With Corona 2] Riders Also Face Rich-Poor Gap
"More Orders Needed to Guarantee Stable Income" ... Riders from Gyeonggi and Incheon Commute to Seoul
Commission Fees Increased to Secure Riders ... Only Consumer Burden Grows
Last June, when the National Courier Workers' Union (Courier Union) staged a general strike, convenience store courier services operated through their own delivery vehicles and hub centers were unaffected. Dawn delivery companies such as Coupang, Market Kurly, and SSG.com, which have their own delivery personnel, also suffered no significant impact. These services operated smoothly in the metropolitan area and major cities despite the courier crisis. In contrast, in rural areas where self-delivery was impossible, various incidents occurred as customers did not receive their online purchases on time.
According to the Ministry of Land, Infrastructure and Transport on the 16th, the average number of courier parcels received per person in Korea last year was 65.1. Domestic courier volume, which was 1.81596 billion parcels in 2015, surged by 85.8% to 3.3737 billion parcels in 2020. In the past year, when COVID-19 began to spread, courier volume increased by 20.9% compared to before the pandemic, marking the highest growth rate in the past decade.
Delivery War, 1-Hour Delivery Emerges
The COVID-19 pandemic rapidly shifted the consumption paradigm toward contactless, short-distance delivery. The dominance in the distribution market shifted from offline to online, and combined with advanced IT technology and logistics systems, consumers were attracted not only by 'low prices' but also by 'more convenient and faster delivery.'
This change was first preferred mainly by digitally savvy younger generations and people in their 30s and 40s who are busy with work and household chores and willing to exchange time and cost. Large supermarkets promised delivery within 3 to 4 hours by emphasizing 'cheaper prices than online,' while supermarkets and convenience stores went further by competing in quick commerce, delivering within an hour or immediately upon order.
Among online grocery shoppers, customers in their 30s and 40s make up the largest proportion, but usage rates and new sign-ups among those aged 50 and above have also surged. The proportion of customers aged 50 and above among new Market Kurly subscribers rose slightly from 18% in 2019 to 21% in 2020, and has significantly increased to 27% this year. A company representative explained, "The proportion of new subscribers aged 50 and above exceeded 20% for the first time in June last year and has steadily risen to 32% as of May this year, showing a consistent upward trend every month." SSG.com also reported that customers aged 50 and above accounted for more than 23% of dawn delivery sales this year, up 5 percentage points from last year and about 20 percentage points compared to 2019 before COVID-19. This indicates that the age gap in contactless trends is rapidly narrowing.
Small and Medium Cities Unable to Provide Service Due to Lack of Delivery Workers
As the delivery war intensified, regional disparities widened. While many companies compete in the metropolitan area and large cities, small and medium-sized cities in rural areas rely only on general courier services or specific delivery platforms. As delivery demand surged, delivery workers (riders) and delivery jobs have concentrated only in cities. Since riders flock to urban areas with high delivery volumes and guaranteed income, it becomes difficult to find delivery personnel on the other side, creating a vicious cycle where the number of riders is insufficient to cover wider areas.
A rider affiliated with a delivery company, Mr. Kim, said, "In downtown Seoul, especially in Gangnam and Gwanghwamun areas, there are many calls (deliveries) and a guaranteed income, so many riders commute from Gyeonggi and Incheon to Seoul. Since companies are raising the commission per delivery to secure riders, ultimately, that burden will be passed on to consumers," he pointed out.
Some voices call for regulations limiting business hours, product handling, and store entry as online platforms penetrate deeply into alley markets, rivaling large supermarkets, but the effectiveness seems minimal. According to a survey conducted by the Korea Startup Forum in February this year targeting 1,000 consumers, over 30% of consumers opposing regulation of online platforms predicted that even if regulations were imposed, there would be no protective effect for small business owners.
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