[Reporter’s Notebook] Delivery App Win-Win Plan Must Be Implemented Without Tricks

On the afternoon of the 14th, the 12th meeting of the ‘Delivery Platform - Merchant Win-Win Council’ was held at the main building of the Government Seoul Office. The expression of Lee Jeong-hee, the chairperson of the Win-Win Council, was stiff as she entered the meeting room. Although this day marked the end of the council meetings that had been ongoing since July, expectations for a practical win-win plan were low. The delivery platforms’ proposal to reduce intermediary fees still showed a significant gap compared to the ‘5% cap’ that the merchants insisted on as a single proposal. Among the council participants, the prevailing view was that while minor agreements might be reached, the most important commission rate issue would end with no gains, concluding the council’s activities empty-handed.

The atmosphere changed when Coupang Eats agreed to "implement the differential commission plan proposed by Baedal Minjok" as is. The two leading delivery app companies, who had repeatedly clashed in the Win-Win Council, created a unified platform proposal, and the public interest commissioners and merchant groups agreed that if this unified plan were implemented, it could immediately help small business owners facing difficulties. The meeting, which was expected to be prolonged, concluded within two hours of starting, ending with applause.

Looking back, the biggest factor that dramatically led to the commission win-win plan at the last minute?despite expectations of a breakdown?was the participants’ agreement on the fundamental premise of ‘supporting small business owners.’ This was the original purpose of the Win-Win Council, which had been forgotten amid complex and intertwined interests.

There are criticisms that the delivery fees merchants must bear under this win-win plan have increased, calling it a trick. Some merchant groups clearly opposed the plan and stormed out of the meeting. From the perspective of franchise companies or large store owners with large transaction volumes who receive relatively fewer benefits, this win-win plan may seem insufficient. The real reason the platforms proposed a commission reduction plan, risking a decrease in sales, might be their concern that if voluntary agreements are not reached, regulations could be imposed through legislation. Nonetheless, what is clear is that this win-win plan will benefit small restaurant owners. Stores in the lowest transaction bracket will see commissions reduced to the level of public delivery apps. Stores in the middle bracket will also receive tangible commission reduction benefits. Chairperson Lee Jeong-hee explained in the final briefing, "Even considering delivery fees, the burden on small business owners decreases, resulting in a positive effect."

The challenge from now on is to ensure that the reduction benefits directly reach small business owners running small restaurants. The public interest commissioners also urged that delivery platforms must not create a ‘balloon effect’ by increasing merchant burdens under other names. For example, if delivery apps raise advertising fees, the carefully crafted commission reduction benefits could disappear. Everyone, including consumers, must watch closely to prevent such tricks from occurring.