[Delivery App Betrayal] "I endured and endured until I finally signed up"... Still, the reason I use 'Baemin'

④Reasons for Using the New Plan Despite This
Initial Screen Design Encourages 'Baemin Baedal'
Various Discount Coupons and Promotions Flood the Market
"Sufficient Grounds for Violation of the Fair Trade Act"

As complaints from self-employed business owners continued, Baedal Minjok (Baemin) clarified that it is not forcing merchants to subscribe to the new pricing plan (Baemin1 Plus). Subscription to the new pricing plan is entirely up to the judgment of the store owners, and if they determine that it does not suit their store conditions, they are free to continue using the existing pricing plan.

A Baemin representative said, "When changing brokerage services, we obtain consent from the participating merchants. We are not forcing subscription to the new pricing plan."

'Baemin Delivery' without me even knowing?

Bae Geon-woo (36), who runs a snack bar in Dongdaemun-gu, Seoul, is preparing for business.
[Photo by Jo Yong-jun]

However, the reactions from self-employed business owners differ. Under the current system, they say it is virtually impossible to operate without using the new pricing plan.

The cause is pointed out as the initial screen of the Baemin application (app). When accessing the Baemin app, the top of the initial screen displays tabs for 'Store Delivery', 'B Mart', and 'Shopping and Groceries'. Although these three tabs share the top portion of the screen, the area occupied by 'Store Delivery' (the service provided under the existing Ultra Call pricing plan) is not very large due to the screen being divided among the three tabs.

In contrast, just below, the 'Baemin Delivery' tab (the service provided under the new Baemin1 Plus pricing plan) is arranged about three times larger than the combined size of the three tabs at the top. Below it, icons representing popular order items such as pork cutlet, sashimi, pizza, and chicken also sparkle. When all these areas are combined, they account for half of the Baemin app's initial screen. Another barrier is that clicking the Baemin Delivery tab once does not fully expose the Store Delivery stores. Customers who accidentally access Baemin Delivery cannot see stores that only offer Store Delivery.

Woowa Brothers stated that since the launch of free delivery, the order volumes for Store Delivery and Baemin Delivery are 'confidential' and cannot be disclosed. Self-employed business owners say that most consumers do not distinguish between the two services and are funneled into Baemin Delivery. Baek Geon-woo (36), who runs a snack bar in Dongdaemun-gu, Seoul, said, "I asked a customer to reorder through Store Delivery because Baemin Delivery seemed to take too long, but they ordered again through Baemin Delivery," adding, "From the self-employed perspective, it is impossible not to use the new pricing plan. Many around me have reluctantly subscribed after enduring it."

Experts pointed out that the initial screen of delivery apps greatly influences consumer choice. Professor Lee Jae-sung of the AI Department at Chung-Ang University’s Software College said, "From the consumer's perspective, they cannot distinguish whether it is Store Delivery or Baemin Delivery. They click on the most eye-catching tab on the initial screen and place an order," adding, "From the self-employed perspective, it is understandable to perceive that Baemin is guiding customers toward Baemin Delivery."

Before (left) and after (right) the redesign of the Baedal Minjok application [Photo by Baedal Minjok]

The Fair Trade Commission (FTC) requested Baemin to self-correct before launching an official investigation amid the controversy. Accordingly, since the 11th, Baemin has been pilot-applying a revamped initial screen in some regions. In the revamped initial screen, unlike before when Baemin Delivery's share was more than three times larger than Store Delivery, the sizes have been equalized. However, since Store Delivery and Baemin Delivery do not both appear on the initial screen and consumers must swipe once sideways to see them, there are criticisms that this is a 'deterioration.'

Professor Lee said, "(Even in the changed method) Baemin Delivery and Store Delivery do not appear to be on the same level," and "From the consumer's perspective, there is no reason to turn the page to make a selection."

In response, a Baemin representative explained, "We have tried to ensure fairness as much as possible in consumers' selection between Store Delivery and Baemin Delivery," adding, "In the changed system, the tab (Store Delivery or Baemin Delivery) that the consumer last accessed appears on the main screen during the next access. Store Delivery is not disadvantaged."

Unable to withstand the 'volume offensive' of various promotions

Aggressive volume offensives are also leading customers to Baemin Delivery. This is because various discount coupons and promotions issued by Baemin itself, in addition to free delivery, apply only to Baemin Delivery.

For franchises selling the same menu at the same price, the pressure of free delivery is much stronger. If there is a store using the new pricing plan within the delivery radius (4 km), customers tend to turn to that store to take advantage of free delivery benefits. Self-employed business owners have to set the delivery fee for Store Delivery to '0 won' and post 'special notices' to appeal to consumers to order through Store Delivery.

Experts see such actions by delivery apps as potentially violating the Fair Trade Act.

Professor Lee Bong-ui of Seoul National University Law School said, "In a situation where choices are abundant, the strongest competitive factors for consumers are delivery fees and food prices," adding, "If a delivery app controls the strongest factors and designs these competitive elements to favor its own service, there is sufficient room to argue that this violates the Fair Trade Act from the perspective of preferential treatment of its own services."

Series Outline

<1> Self-employed business owners losing money the more they sell
<2> How free delivery operates
<3> Cries erupting here and there
<4> Despite this, why they have no choice but to use the 'new pricing plan'
<5> Superficial FTC voluntary regulation
<6> Expert suggestions: Regulation measures for delivery platforms