Differences Confirmed on Fee Burden Relief
Consultative Body Plans to Support Deriving Win-Win Solutions
The 'Delivery Platform-Merchant Win-Win Council' is currently at a standstill. Originally intended to be a government-led initiative involving major delivery app companies such as Baedal Minjok, Coupang Eats, and Yogiyo to devise win-win measures including commission rate reductions, the council has failed to narrow differences between merchant groups and delivery app operators even after seven meetings. If the two sides cannot reach an agreement after further discussions, public interest commissioners will propose a mediation plan. However, this mediation plan is only a recommendation, and there is speculation about the possibility of future legislative regulation of commission rates.
On the 14th, the Win-Win Council announced that although the platform companies presented a supplemented position on key issues such as commissions following the 7th meeting held that afternoon, no agreement was reached. The meeting focused on four major demands previously raised by the merchants. These four demands were ▲measures to alleviate the burden of commissions on merchants ▲display of merchant burden items (commissions and delivery fees) on consumer receipts ▲cessation of most-favored-nation demands ▲sharing of delivery driver location information.
Based on the results of the previous meeting, the delivery platforms reviewed the merchants' demands and each company presented a supplemented position. Based on this, both sides engaged in in-depth discussions. In particular, there was intensive exchange of opinions on key issues such as measures to reduce commission burdens. However, the discussions confirmed that differences in positions remain between the two sides.
The win-win proposals previously presented by Baemin and Yogiyo are based on differential commission rates. Some representatives of small business groups attending the meeting agreed with the basic structure of differential commissions, which exempts traditional markets from commissions and applies preferential commission rates to lower-tier merchants. However, there have still been claims that commission rates should be lowered to the level of public apps for all merchants. The proposed win-win plans are difficult to reach consensus on, and Coupang Eats is reportedly responding passively, citing losses in its food delivery business. Participants pointed out that this has caused the overall discussions to stall.
Opinions among merchants are also divided. Some have advocated for a '5% cap and differential commission rates based on sales,' while other groups have demanded adjustments so that the average commission rate is between 5% and 5.5% without a cap. Regarding Baemin’s win-win plan, there are criticisms that commission reductions for small business owners with low sales do not provide practical help, while others suggest a complex win-win approach that reduces the burden on low-sales merchants facing difficult circumstances and addresses the cessation of most-favored-nation demands.
A government official stated, "The public interest commissioners requested both sides to reconsider the opposing positions and present more advanced proposals at the next meeting," adding, "The Win-Win Council plans to hold additional meetings soon to coordinate positions between the two sides."
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