Food delivery fees rising in S. Korea as more apps launch one order per trip services

배달앱은 출혈 경쟁한다는데...배달료는 치솟아
Food delivery is bigger than ever, but so is the fee taken by the apps.
It's causing some restaurant owners and customers alike... to reconsider using the apps... and the government to announce an investigation.
Eum Ji-young has more.
Yoo Deok-hyun is one of many restaurant owners who have decided to no longer provide delivery services through smartphone apps because the commission fees are getting more and more expensive.
He plans to deliver the food himself to places nearby or encourage customers to visit the store in person for pick ups.
"We offer additional perks or complimentary menu items for those customers who visit the store for take-out."
It's not just restaurants but also customers who have noticed the rise in delivery fees.
One of the emerging trends among young people is to order with people who live nearby to save on delivery fees.
"When people in apartments or residential areas order food delivery like fried chicken, they look for people who want to order together and from one restaurant so they only pay the delivery fee once."
One of the reasons behind the rising fees is the competition between the different food delivery apps... all rushing to provide faster delivery services.
A late comer into the market, Coupang Eats by e-commerce giant Coupang, began to offer a service whereby riders carry out just one order at a time rather than multiple orders together.
This cuts delivery times right down.
After it enjoyed a surge in popularity, other existing players launched similar services,... pushing up delivery fees as more riders were needed.
"Because riders get more fees for single-order trips, more delivery riders are transferring to apps that offer those services. The company that uses multiple orders per trip are hiking fees to pay more to the riders in order to avoid losing them."
Amid the increasing demand in delivery services due to the surge in COVID-19 case numbers, the government plans to investigate the cost of food delivery services starting this month.
Eum Ji-young, Arirang News.
#Food_delivery #SouthKorea #fee
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2022-02-03, 17:00 (KST)

[@alexsandrkerensky7457]

ONE ORDER? Big smoke’s order counts as one order，doesnt it 🤣

[@eliungcong]

In my country the fee up to 30% . .

[@dogwink]

Korean food delivery apps are dumb in that they do NOT have a way to pay using foreign VISA/Mastercard or PayPal. You need a local payment method (Korean credit card, JCB, Kakao/Naver Pay) that require domestic ID. Short-term foreigners will likely have to pay exact cash at the door if that option exists. If a company offers foreign payment, they will corner the tourist market before the competition catches up!