Written by • 12:03 PM• Economics

Baemin to Exclude Delivery Fee Discounts from Commission Calculations

Baemin said it will revise its fee calculation method so that delivery-fee discounts are excluded f…

Key Summary

  • Baemin said it will stop including delivery-fee discount amounts when calculating certain commissions.
  • The company said it will revise the terms of its Baemin Delivery service to reflect the change.
  • Baemin estimated the move could reduce annual commission costs for restaurant partners by about 110 billion won.
  • The company said the change follows requests from small business groups in the food-service sector.

Main Story

South Korean food delivery platform Baemin said it will change how it calculates commissions so that delivery-fee discounts are excluded from the base used for fee assessment.

According to Wooa Brothers, the operator of Baemin, the company announced on the 12th that it plans to amend the terms and conditions for its Baemin Delivery service. Until now, commissions had been charged based on the price before discounts. Under the revised approach, the amount discounted from delivery fees will no longer be counted in commission calculations.

The company gave an example in which an order worth 25,000 won receives a 3,000-won discount from a partner. In that case, intermediary and payment-settlement commissions would be calculated only on 22,000 won, regardless of the discount label.

Baemin said it had already excluded food-price discounts from intermediary and payment-settlement commission calculations. It also said that in May last year it built a system to check how much of a discount coupon issued by a franchise headquarters is borne by a franchisee, and that amount is also excluded from commission calculations.

The company said it reflected a request made during discussions with major small business organizations in the restaurant sector, which asked that delivery-fee discounts also be excluded from commission calculations.

Baemin said the new policy is expected to save its partner businesses a combined 110 billion won a year in commission costs compared with the previous method. It also said it expects restaurant partners to use delivery-fee discounts more actively without added commission burdens, which could in turn lead to greater discount benefits for customers.

Wooa Brothers CEO Kim Beom-seok said the company will continue pursuing practical cooperation measures that reduce burdens on partners and translate into benefits for customers.

Background

The supplied article says Baemin had already removed food-price discounts from commission calculations and had separately introduced a system last year to exclude certain franchise coupon costs borne by store owners. No additional background was provided.

Items Requiring Further Verification

  • The estimated annual commission reduction of 110 billion won is a company projection and was not independently verified in the supplied text.
  • The statement that the change will lead to greater customer discounts is presented as Baemin’s expectation, not as a confirmed outcome.
  • The reported requests from small business organizations are attributed to Baemin and are not documented in detail in the article.
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