Delivery Platform and Tenant Coexistence Council Meeting Ends in Deadlock Due to Unresolved Differences

Baedal Minjok Proposes 9.8% Brokerage Commission Rate

The 6th meeting of the delivery platform-merchant coexistence council ended in deadlock without narrowing differences.

According to delivery app merchant groups and the industry on the 8th, Woowa Brothers, the operator of Baedal Minjok, proposed a coexistence plan at the meeting to apply the existing 9.8% commission rate to the top 60% of merchants based on delivery app sales. For the top 60?80%, a rate of 5.8?6.8% would be applied, and for the top 80?100%, a 2% rate would be applied. A representative of the merchant groups pointed out, "This is a step back compared to the previously known coexistence plan proposed by Baemin (applying 9.8% to the top 40% or more)."

The merchant groups participating in the council rejected Baemin’s coexistence plan and instead demanded to cap the commission rate at 5%. Before the meeting on the day, the merchant groups held a preliminary meeting on the 4th and agreed to demand a commission rate between 2% and 5%. An industry official explained, "The merchants’ demand is to limit the maximum commission rate to around 5%, and they judged that even the previous 6.8% rate before Baemin unilaterally raised the commission to 9.8% was excessive."

Another industry official also pointed out, "It is true that the delivery market has grown thanks to delivery apps, but costs have increased excessively. Commission rates above 5% are difficult to accept."

In response, a Fair Trade Commission official demanded at the meeting that the delivery app operators submit a revised coexistence plan by the 10th. The government plans to hold the 7th council meeting on the 14th to continue discussions based on the revised coexistence plan.

Coupang Eats, the industry’s second largest, is reportedly planning to follow Baemin’s policy, the number one delivery app. Yogiyo, ranked third, lowered its delivery commission rate by 2.8 percentage points from 12.5% to 9.7% in August.