Since 2020, Three Public Delivery Apps in Cheonan Closed
Small Business Owners Can Use Delivery Apps by Paying Only 2% Commission
Most public delivery apps in Cheonan, Chungnam, which sprang up in large numbers during the COVID-19 pandemic, have either gone out of business or are not functioning properly due to low usage rates.
According to Cheonan City on the 2nd, although the food delivery business has grown significantly since 2020, self-employed business owners have faced increasing difficulties due to excessive commissions and delivery fees charged by major delivery companies.
In response, public delivery companies targeting local small business owners entered the Cheonan market, offering low commission rates of around 2% as their main advantage. Cheonan City also signed business agreements with these companies, supporting them by providing budgets for issuing discount coupons, enabling payments via the Cheonan Love Card, and promoting the services to increase usage rates.
Since 2020, a total of five public delivery companies have signed business agreements with Cheonan City, but the results have been disappointing. Three companies have already closed down, and the remaining two have less than 1,000 daily users, indicating very low usage. Cheonan City has also decided not to renew agreements with these companies, meaning that there are virtually no public delivery companies operating in the region.
In response, Cheonan City is once again launching a local win-win public delivery project in partnership with Shinhan Bank.
On the 31st of last month, the city signed a public-private partnership agreement for a public delivery app with "Ddanggyeyo," developed by Shinhan Bank. Under the agreement, local small business owners can use the delivery app by paying only a 2% commission, with no additional entry fees, advertising costs, or monthly fixed charges.
Shinhan Bank has promised same-day settlement services and marketing support, and payments via the Cheonan Love Card are also available.
The city expects "Ddanggyeyo," which currently ranks fourth in market share among delivery companies, to be more competitive compared to previous public delivery companies.
A city official stated, "This project with Shinhan Bank is a public-private partnership that does not require any separate city budget," adding, "However, we will monitor user trends and, if necessary, consider additional measures such as issuing coupons in the future."
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