Baemin, the most popular mobile delivery service in Korea, is thought to be taking about 23-26 percent in commissions and fees from each order, a report showed Thursday.
The civic group People's Solidarity for Participatory Democracy analyzed three stores using Baemin's services and found that the combined commissions and fees charged to stores for each order rose from 20-22 percent in August 2023 to 23-26 percent in August this year.
The app also charges a fixed "delivery fee" per order, meaning some stores ended up paying as much as 30 percent of an order's total for lower-priced meals.
In one case, the store had to pay the app 4,500 won ($3.10) for a 15,000 won delivery, according to the report.
Baemin introduced a "free delivery" system last year that exempts delivery fees for consumers with paid subscriptions. But the report said the financial burden of the system mostly fell on the stores, forcing them to raise prices, which ultimately led to consumers paying more.
In 2023, a tonkatsu (Japanese-style cutlet) and noodle dish from one particular store cost 12,000 won, and delivery cost 3,000 won. This year, the same meal at the same store costs 16,000 won, while free delivery is offered to paid subscribers who pay 1,990 won per month.
PSPD claimed that the increase in delivery costs is clearly leading to price hikes and suggested putting a cap on how much commission can be charged for food delivery.
Baemin has the largest consumer base among food delivery application services in the country, with 2.23 million users as of March, surpassing the 11 million users of Korea's second-largest delivery app, Coupang Eats.
minsikyoon@heraldcorp.com
