"Monthly Income Increased by 400,000 Won?"... Riders Angry at Baemin's Claim

"Income Decrease Since Altteul Delivery Introduction"
Riders and Business Owners Alike Are Angry at Baemin

Baedal Minjok announced that the average monthly income of its riders increased by 400,000 KRW (11.3%) compared to the same period last year, but delivery communities responded with backlash, saying "our income has actually decreased."

Delivery workers are holding a press conference urging the introduction of a safety delivery fee for Baedal Minjok riders.
[Photo by Jinhyung Kang aymsdream@]

Recently, Woowa Brothers, which is in charge of Baedal Minjok's logistics services, released a press statement reporting that riders who operate more than 40 hours a week on Baemin Connect earned an average monthly income of 3.93 million KRW from January to April. The top 10% of earners during this period had an average monthly income of 4.04 million KRW, which is 270,000 KRW more than the 3.77 million KRW recorded in the same period last year. They praised this as "the result of about one year since the introduction of 'Altteul Baedal' (Economical Delivery), implemented to improve delivery efficiency and rider profitability."

However, industry insiders had a different reaction. They said, "To earn more than 4 million KRW a month, you basically have to work during the morning and afternoon peak hours, and even at night." Some sarcastically asked, "So, are you saying that by giving the best calls to the top 10%, their working hours decreased but their income increased?" Complaints also poured in, saying, "Because riders who verify their income are showing they make good money, more people are taking on side jobs." They argued that the increase in delivery personnel due to marketing encouraging side jobs, along with Baemin's introduction of Altteul Baedal, has actually led to a decrease in income.

Altteul Baedal is a service that optimizes multiple deliveries into the most efficient route based on AI-recommended dispatching and proposes this to riders. It was first implemented in Gwanak-gu at the end of April last year and has since expanded to other service areas. After introducing Altteul Baedal, Baedal Minjok changed the delivery fee system paid to riders to a segmented delivery fee. Riders generally agree that their income has decreased since then.

Not only delivery riders but also restaurant owners say, "Baemin is killing us"

Complaints from restaurant owners toward Baedal Minjok are also surging. Starting July 1, Baedal Minjok will charge a 6.8% commission fee for packaging orders to newly registered store owners. Existing store owners on Baedal Minjok will have to pay packaging fees starting March 31 next year. The 6.8% fee is the same rate as Baedal Minjok's delivery order commission. This means that when selling packaged food, they will have to pay the same amount to the delivery app as for delivery sales. There are concerns that this cost will eventually be passed on to consumers, as it is likely that the commission will be reflected in the food prices.

The parent company of Woowa Brothers, the operator of Baedal Minjok, is the German company Delivery Hero (DH). At the end of 2019, Delivery Hero valued Woowa Brothers at 4 billion USD (about 4.75 trillion KRW), acquiring an 87% stake and selling Yogiyo. Recently, there has been speculation inside and outside the industry that Delivery Hero might soon start recovering massive investments from Woowa Brothers.

According to a report by the Financial Times, as of September last year, Delivery Hero's debt maturing by 2030 amounts to 5.7 billion euros (about 8.2 trillion KRW), and its stock price has fallen nearly 60% over the past year.