Delivery Platform-Merchant Win-Win Council Holds 12th Meeting
Baedal Minjok and Coupang Eats Reach General Consensus on Final Win-Win Proposal
System Overhaul by Delivery Platform Operators Scheduled for Early Next Year
The 'Delivery Platform-Merchant Win-Win Council' has successfully reached a last-minute agreement on a commission fee win-win plan. It took 115 days since the start of the meetings. In the final meeting, Coupang Eats agreed to the proposal presented by Baedal Minjok, which applies a brokerage commission fee ranging from 2.0% to 7.8% based on transaction amounts, resulting in a unified plan for the Baemin-Coupang Eats platform. The merchants also judged that this win-win plan could help small business owners if implemented.
On the 14th, the Delivery Platform-Merchant Win-Win Council announced that the 12th meeting was held that afternoon. In the previous meeting, the council requested Coupang Eats to present a new win-win plan close to the mediation principles, and asked Baemin to review whether there were any parts of the current win-win plan that needed improvement. Baemin and Coupang Eats requested additional time to submit their final win-win plans, and both companies submitted their proposals on the 11th. The mediation principles suggested by the public interest commissioners were to apply differential commission fees but keep the average brokerage commission rate below approximately 6.8%. They also recommended that the maximum commission fee be set lower than the current 9.8%.
At the 12th meeting, Baemin proposed a plan based on transaction amounts: a brokerage commission of 7.8% with delivery fees of 2,400 to 3,400 KRW for the top 35%, 6.8% commission with delivery fees of 2,100 to 3,100 KRW for the 35-50% range, 6.8% commission with delivery fees of 1,900 to 2,900 KRW for the 50-80% range, and 2.0% commission with delivery fees of 1,900 to 2,900 KRW for the bottom 20%. Additionally, Baemin included a plan to expand nationwide the pilot program that charged 0% brokerage commission in some traditional markets.
Coupang Eats proposed a plan with an 8.8% brokerage commission and delivery fees of 2,130 to 3,130 KRW for the top 35%, 7.8% commission with delivery fees of 1,900 to 2,900 KRW for the 35-50% range, 6.8% commission with delivery fees of 1,900 to 2,900 KRW for the 50-80% range, and 2.0% commission with delivery fees of 1,900 to 2,900 KRW for the bottom 20%.
During the meeting, after discussing each company's win-win plans, Coupang Eats stated that Baemin's proposal, which had lower brokerage commissions than its own plan, aligned better with the council's purpose and agreed to implement the win-win plan as proposed by Baemin.
Regarding the win-win plans submitted by both companies, the merchant groups in the council expressed that, given the current economic difficulties faced by many small business owners, it would be desirable to implement the plan even if it had some shortcomings, as it could help them. However, there was also an opinion that the plans proposed by both companies were insufficient to alleviate the burden on merchants. Ultimately, the final plan was approved with the support of the Small Business Federation, the National Merchants Federation, and the public interest commissioners, despite the opposition and walkout of the Korea Food Service Industry Association and the National Franchise Owners Association.
The public interest commissioners agreed that although the win-win plans by Baemin and Coupang Eats did not fully meet the expectations of the merchant industry, they believed the plans could help small business owners currently facing difficulties. Lee Jeong-hee, chairperson of the Win-Win Council, said at a briefing that "the final revised plan was accepted out of concern that delays would increase harm to small business owners." The commissioners also stated that since this win-win plan is the first step toward coexistence and change in the delivery app market, ongoing discussions on win-win measures should continue, and the establishment of a related permanent organization should be considered. They also emphasized that the plan should not cause increased burdens in other areas due to a balloon effect.
With the win-win plan from Baemin and Coupang Eats finalized at the 12th meeting, each delivery platform operator will promptly update their systems to implement it. Baemin and Coupang Eats announced plans to complete system adjustments and apply the plan early next year. The application period will be for the next three years. A representative from Woowa Brothers, which operates Baemin, said, "We will continue to strive to be a reliable partner for self-employed business owners who diligently prepare food and serve customers while quietly continuing their livelihoods," adding, "We will work to respond to market competition, grow together with merchants, and provide consumers with service satisfaction and technological innovation benefits." A Coupang Eats representative explained, "We proposed a win-win plan that maintains free delivery service for customers while providing commission discounts to all self-employed business owners," and added, "Despite being a latecomer in a deficit situation, we plan to ensure that all self-employed business owners benefit without excluding any stores based on Baemin's differential commission win-win plan."
The council had previously established other win-win measures besides commission rates. It was agreed to detail brokerage commissions, payment fees, and delivery fees on consumer receipts. The principle is to stop the demand for most-favored-nation treatment. If immediate cessation is difficult, operational policies will be revised based on the Fair Trade Commission's investigation results. Delivery rider location sharing will cover the segment from order acceptance to product pickup, and efforts will be made to resolve disputes such as delivery accidents.
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