[The Editors' Verdict] Let's Use 'Ttaenggyeoyo' Instead of Baemin and Yogiyo

"Baemin (Baedal Minjok) holds a dominant monopoly position in the delivery application (app) market with a market share of 58.7% in 2022, 66.6% in 2023, and 61.4% as of June this year. It is criticized for frequently changing its terms and fees to maximize its own profits by exploiting this position. I think the name 'Woowa Brothers' should be changed to 'Ugly Brothers'." (Park Hyung-su, People Power Party lawmaker)

"Beyond visible power abuse, I will talk about Baemin's blatant abuse of terms and contracts. Article 8 of Baemin Store Seller Terms of Use states that the company does not provide any guarantees and places all related responsibilities on the sellers, thereby engaging in power abuse." (Kim Won-i, Democratic Party lawmaker)

"The delivery platform fees and related costs borne by small business owners and other tenants amount to 24% of their sales. This is a significant figure compared to the average operating profit margin of about 7%." (Kang Seung-gyu, People Power Party lawmaker)

At the National Assembly's Industry, Trade, Energy, Small and Medium Business Committee's audit on the 8th, there was a flood of criticism against Baemin. After Baemin raised its self-delivery commission rate by 3 percentage points to 9.8% in August this year, public opinion toward Baemin rapidly deteriorated. Amid this atmosphere, the monthly active users (MAU) of Baemin and its affiliate Yogiyo decreased, while the MAU of Coupang Eats, the second-largest delivery app, reportedly increased.

However, Coupang Eats is not much different from Baemin and Yogiyo. Coupang Eats' brokerage fee is 9.8%, similar to Baemin's 9.8% and Yogiyo's 9.7%. Although each company has different standards, costs for top exposure such as recommended advertisements are also imposed similarly. As of last month, the market shares of these three companies were Baemin 59%, Coupang Eats 24%, and Yogiyo 14%, totaling 97%.

Delivery apps opposing them include Ttaenggyeoyo, started by Shinhan Bank with a public character as a win-win finance initiative; Mukkaebi, selected by 12 local governments as a public delivery app; Gyeonggi-do's Baedal Teukgeup; Busan City's Dongbaektong; and Wemakeprice O, operated through an agreement by Gwangju City. Their market share is only about 3%.

It is said that the power abuse by Baemin and other delivery apps has gone too far, but consumers can use Ttaenggyeoyo and public delivery apps. There are many benefits for consumers.

Ttaenggyeoyo has agreements with 21 local governments nationwide and allows payment with local currencies (such as local love gift certificates). As you know, local currencies are issued with a 5% discount. Some local governments started issuing Ttaenggyeoyo gift certificates with a 15% discount from September 24. Ttaenggyeoyo also has more self-promotions and events than other delivery apps.

It also greatly helps self-employed business owners. Ttaenggyeoyo's brokerage fee is 2%, which is one-fifth of the three major delivery apps. Ttaenggyeoyo allows business owners to set delivery fees at their discretion, whereas Coupang Eats charges business owners delivery fees ranging from 1,800 to 5,400 KRW, and Baemin charges from 0 to 6,000 KRW. There are no top exposure costs, so assuming monthly sales of 25 million KRW, Ttaenggyeoyo's total fees are about 500,000 KRW, which is between one-seventh and one-eleventh of the three major delivery apps. Payment settlement is also faster, with same-day deposits (card payments are deposited the next business day), compared to 3 to 5 business days for the three major delivery apps. If customers order through the restaurant's dedicated QR code, franchisees do not have to incur operating and maintenance costs related to non-face-to-face ordering systems (kiosks, tablet PCs, etc.).

Self-employed owners should also join as Ttaenggyeoyo franchisees. The number of Ttaenggyeoyo franchisees is 173,000, which is much smaller than Baemin's estimated 300,000.

Additionally, Shinhan Bank provides 'Ttaenggyeoyo Business Loans,' which calculate loan limits based on sales settlement amounts in Shinhan Bank accounts and quickly support operating funds through a fully non-face-to-face process. For small business owners who have difficulty securing stable funds due to daily sales fluctuations, the 'Small Business Win-Win Daily Ttaenggyeo Dream Loan,' which supports a certain amount of operating funds daily including holidays, will be launched on the 18th.

For consumers, the bank also operates the 'Shinhan Ttaenggyeoyo Pay Account,' a high-interest deposit and withdrawal account with up to 3% annual interest. All new subscribers receive Ttaenggyeoyo discount coupons worth 18,000 KRW, and when using Ttaenggyeoyo Pay for simple payments at least once a month with this account, they receive up to 3% preferential interest rates. An event awarding up to 20% points on order amounts is also ongoing within the year.

During the audit on the 8th, lawmakers pointed out the need to activate public delivery apps. However, public delivery apps are negligible compared to Ttaenggyeoyo in terms of sales, number of franchisees, and users. Moreover, public apps struggle to keep up with the efficiency and ideas of private apps. Wouldn't it be much better to foster Ttaenggyeoyo, a private app with a public character, rather than nurturing public delivery apps?