[Exclusive] Smartphone Use Likely to Be Banned During Delivery... Government Strengthens Comprehensive Regulations

Government Alarmed by Delivery Rider Accidents, Strengthens Safety Measures
Ministry of Employment Promotes MOU and Conducts Full Survey with Fines Imposed
Considering Smartphone Ban Features and Legal Revisions
Delivery Platform Companies Still Suffering Losses
"Government Shouldn't Focus Only on Regulation... Need Incentive Measures," Appeals

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government has rolled up its sleeves to ensure the safety of delivery riders. Regulations are expected to be strengthened comprehensively, including the abolition of the artificial intelligence (AI) dispatch system and the prohibition of smartphone use while driving. The food delivery platform ecosystem is under pressure from multiple government ministries, including the Ministry of Land, Infrastructure and Transport, the Ministry of Employment and Labor, and the Ministry of the Interior and Safety.

On the 12th, a delivery industry official stated, "Recently, under the leadership of the Ministry of Employment and Labor, a voluntary memorandum of understanding (MOU) is being promoted to strengthen rider safety management among delivery platform companies." The MOU is expected to include delivery app companies such as Woowa Brothers, which operates Baedal Minjok, and Coupang Eats, as well as delivery agencies like Saenggakdaero and Barogo. Delivery companies participating in the MOU will have enhanced responsibilities and roles regarding rider safety.

The content and format of the MOU will benchmark the Australian case. In July, major Australian delivery companies such as Deliveroo, DoorDash, and Uber Eats signed a memorandum of understanding to strive for safe food delivery. They promised △ the use of appropriate delivery equipment △ implementation of safety policies that avoid rushing deliveries through app functions and notifications △ application of rider insurance.

If such provisions are applied to the domestic delivery industry, AI dispatch functions that encourage shortening delivery times may be abolished, and setting target completion counts may be prohibited. Woowa Brothers was the first in the industry to introduce an AI dispatch system, and Coupang Eats operates a reward program that differentiates delivery fees based on the number of deliveries. An industry official predicted, "Although the MOU has a declarative nature, the government will conduct follow-up inspections on matters such as industrial accident insurance subscription rates."

An official letter sent on the 11th by the Traffic Safety Division of the Seoul Metropolitan Police Agency to delivery platform companies. It inquires about their opinions for and against the introduction of a smartphone operation prohibition feature to ensure the safety of delivery riders. The Seoul Police Agency is promoting a long-term legislative amendment to prohibit smartphone use while operating delivery motorcycles.

The Ministry of Employment and Labor is conducting a full survey of about 20 food delivery platforms from October to November. They are checking compliance with the Industrial Safety and Health Act, and if violations are found, administrative actions such as fines are being imposed.

The National Police Agency under the Ministry of the Interior and Safety will conduct special crackdowns on two-wheeled vehicles until next month to prevent rider accidents. The Seoul Metropolitan Police Agency held a meeting with delivery companies on the 9th to gather opinions on introducing a function to prohibit smartphone use while driving and strengthening rider safety education. The Seoul Police Agency, together with the Ministry of Employment and Labor, is also considering revising laws to explicitly ban smartphone use while operating delivery two-wheelers. The Ministry of Land, Infrastructure and Transport is accelerating the introduction of a certification system to select excellent delivery companies. The purpose is to increase company reliability by evaluating excellent operators based on rider safety education and efforts to prevent industrial accidents.

Additionally, on the occasion of Pedestrian Day on the 11th, Lee Jae-myung, the Democratic Party presidential candidate, announced a pledge to mandate the attachment of front license plates on two-wheelers and strengthen noise control standards.

The problem is that although demand for delivery has increased since COVID-19, and companies’ sales have risen, most companies are still struggling with deficits. They suffer from chronic rider shortages, competition among companies, and the burden of delivery fee increases. An industry official said, "After the national audit, the government’s regulatory-only stance has intensified," adding, "Carrot measures such as easing restrictions on civil servants’ side jobs as delivery riders and measures to secure foreign riders are needed."