'Crazy Delivery Fees Backfire...' Used Motorcycle Listings Flood the Market

Increase in Used Motorcycle Listings Due to Decline in Delivery Demand
Dining Prices Rise 8%... Highest in 30 Years

Photo by Asia Economy DB.

[Asia Economy Reporter Heo Midam] # Kim Jooyoung (26, pseudonym), an office worker living alone in Guro-gu, Seoul, recently deleted delivery apps. This is because the monthly spending on delivery food easily exceeded 300,000 won. Especially, with both dining-out costs and delivery fees rising, the burden has grown even heavier. Kim said, "Instead of using delivery apps, I go directly to the store to pick up food or use meal kits," adding, "If they are going to charge delivery fees, I wish they would at least remove the minimum order amount. Living alone, I end up ordering at least two menu items to meet the minimum, so I end up spending more money."

Recently, the growth of the delivery app market, which had been booming due to the COVID-19 pandemic, is slowing down. As social distancing measures have been lifted and more people visit restaurants in person, delivery demand is decreasing day by day. Consequently, delivery drivers whose income has dropped have started quitting their jobs, leading to a flood of delivery motorcycles being listed on secondhand trading platforms.

On the 14th, posts selling used motorcycles under 125cc, mainly ridden by delivery drivers, have been continuously appearing on 'Bike Tuning Mania (Batumae)', the largest motorcycle community in Korea. Some sellers even included delivery boxes, phone holders for receiving delivery calls, helmets, and other accessories in the sales. Last month, the community recorded about 4,770 posts selling motorcycles under 125cc, marking a peak. This is a sharp increase compared to about 3,200 and 4,000 posts in April and May, respectively.

This is interpreted as delivery drivers disposing of motorcycles due to reduced work caused by a significant drop in delivery demand compared to before. In the delivery industry, a new term 'Callsa (Call+死)', meaning a sharp decline in delivery order calls, has even emerged.

Office workers are carrying packed lunches while moving in Myeongdong, Seoul. Photo by Mun Ho-nam munonam@

The reason consumers are distancing themselves from delivery apps is related to soaring dining-out and delivery fees. Office worker Lee Gayoung (30, pseudonym) said, "Delivery apps are convenient, but the economic burden is too great to keep using them. Food expenses are already high, and when you add delivery fees, it's unbearable," adding, "These days, delivery fees start at 4,000 won or more. Delivery fees didn't exist before. I miss those days."

In fact, consumption through delivery apps is showing a downward trend. According to app and retail analysis firm WiseApp, the payment amount for the three major delivery apps (Baedal Minjok, Yogiyo, Coupang Eats) last month was 18.7 billion won, marking the lowest point of the year. This is a 21% decrease compared to March, before social distancing was lifted, when it was 23.5 billion won.

The rise in dining-out prices has also accelerated the departure from delivery apps. As food prices increased due to inflation, more people chose to eat at home rather than order delivery. According to the National Statistical Portal (KOSIS) of Statistics Korea, the dining-out price index last month rose 8.0% compared to the same period last year. This is the highest increase in 29 years and 9 months since October 1992 (8.8%).

By item, eight categories showed double-digit increases: ▲Galbitang (12.1%) ▲Jajangmyeon (11.5%) ▲Lunch boxes (11.3%) ▲Chicken (11.0%) ▲Gimbap (10.6%) ▲Raw fish (10.4%) ▲Ramen (10.3%) ▲Samgyeopsal (10.0%).

Professor Lee Eunhee of Inha University’s Department of Consumer Studies said, "Consumers are tightening their belts due to soaring prices. They are trying to reduce expenses as much as possible, and delivery fees are a representative item. Also, after social distancing was lifted, citizens go out more frequently, and many endure inconvenience or bother to pick up food themselves," she explained.