Due to commission fees, 'delivery group buying' is popular with "Monthly 13 million won delivery income" certification... Government regulation steps in

[Image source=Yonhap News]

[Asia Economy Reporter Seoyoung Kwon] Amid growing controversy over the recent sharp increase in delivery service fees, the government has announced its intention to implement regulations.

On the 21st, Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, held the '2nd Vice Ministers' Meeting on Prices' at the Seoul YWCA Hall to discuss measures for price stabilization. As concerns over rising prices intensified due to the widespread increase in prices of raw materials such as oil and agricultural, fishery, and livestock products, the government has been holding weekly price meetings with related ministries to closely monitor price stability.

At this meeting, the government agreed that starting from February, the Consumer Organizations Council will conduct a monthly survey on delivery fees and publish the results on both the Consumer Organizations Council website and the Korea Consumer Agency website. Since the government currently lacks the legal grounds to directly control delivery fees, this move is interpreted as an attempt to exert pressure through consumer organizations.

In response, consumer organizations plan to compare and provide information on commission fees for each delivery service and investigate and disclose price differences based on order methods, such as minimum order amount restrictions. Vice Minister Lee said, "Recently, delivery fees have risen sharply, becoming one of the main reasons for the increase in dining-out prices. There has even been the emergence of 'delivery group orders' among apartment residents to save on delivery fees." He added, "We will first conduct a pilot project targeting some areas such as Seoul and expand it based on the results."

Delivery motorcycle moving to the underground parking lot.
Photo by Yonhap News

This government action is presumed to be in response to growing consumer dissatisfaction as delivery fees have increased across various delivery agencies. According to the delivery industry, most companies have raised delivery commissions by 500 to 1000 won starting this month, with the average basic delivery fee in the metropolitan area rising from 3,300 won to around 4,400 won. Additionally, in some areas of Seoul and Gyeonggi Province, delivery fees have reached as high as 10,000 won.

On the 21st, an online community post by a user claiming to be a delivery worker stated that their monthly income reached 13 million won. However, reactions in the comments were mixed. Speculations arose that the delivery worker might have increased the number of deliveries excessively since income is calculated per delivery, concerns about traffic safety were raised, and some analyses suggested that the amount might be limited to specific regions.

Previously, posts appeared on various online communities and resident forums describing cost-saving methods by sharing delivery fees collectively through platforms like KakaoTalk or neighborhood communities. One user commented, "We order chicken or coffee together through the apartment group chat," adding, "When the delivery arrives, one person from each household comes out to take their order. When the delivery fee is split, the delivery person is often confused and stands around for a while."

However, opinions on this 'delivery group order' method were divided among other users. Some positively remarked, "Isn't this a revival of the neighborly spirit?" and "Even just 2 to 3 households ordering together significantly reduces delivery fee burdens," while others expressed concerns, saying, "If this method becomes widespread, delivery fees might increase for orders above a certain quantity, or the number of deliveries might be limited."