[Digital Daily Reporter Wang Jin-hwa] To alleviate the delivery cost burden on small business owners, the Delivery Platform-Store Partnership Council held its 11th meeting on the 7th. The meeting reportedly started at 2:30 PM and concluded around 10:30 PM. This is the second marathon meeting following the 9th session.
The newly introduced differentiated commission rate by Coupang Eats, presented as an additional cooperation plan, seemed to be the focus of the day’s meeting.
Baemin set a condition that it would implement such cooperation plans only if Coupang Eats implements similar measures. The public interest committee inferred that “the reduction level of the commission rate is low and raising delivery fees while lowering brokerage commissions is a drawback” from Coupang Eats’ proposal.
Lee Jeong-hee, Chairman of the Partnership Council (Professor at Chung-Ang University), said in a briefing on the 8th regarding the 11th meeting of the ‘Delivery Platform-Store Partnership Council’ held that morning, “The basic fees collected from top earners haven’t decreased much, and additional surcharges increase the burden.” He added, “The public interest committee discussed various issues and asked Coupang Eats to submit an improved revised plan.”
Previously, Coupang Eats lowered brokerage fees based on transaction amounts with the company to 9.5% for the top 10%, 9.1% for the top 10-20%, 8.8% for the top 20-50%, 7.8% for the top 50-65%, 6.8% for the top 65-80%, and 2.0% for the bottom 20%.
However, they proposed increasing the delivery fee from the existing 1,900-2,900 won to 2,900 won and imposing additional surcharges on the top 50% in transactions. An extra 100 won would be charged per 100 meters beyond a basic distance of 1.5 km, and a weather surcharge of approximately 1,000 won during bad weather.
Baemin proposed a brokerage fee of 7.8% with a delivery fee of 2,400-3,400 won for the top 30% based on transaction amounts with them, 6.8% with a delivery fee of 2,200-3,200 won for the top 30-80%, and a 2.0% fee with a delivery fee of 1,900-2,900 won for the bottom 20%.
Additionally, they proposed expanding the pilot program of a 0% brokerage fee in some traditional markets nationwide. However, Baemin attached the condition that such a cooperation plan would only be implemented if Coupang Eats adopts a similar level of measures.
Public interest committee members evaluated Baemin’s proposal as disappointing due to increasing delivery fees while reducing brokerage fees and setting the implementation of these cooperation measures on whether other companies also implement them. They requested reconsideration towards improvement.
Chairman Lee stated, “If Baemin and Coupang Eats bring revised cooperation plans on the 11th that public interest committees deem fit to consider, a 12th meeting may be held.”
In the event of a breakdown, it was agreed to proceed with consensus on issues excluding fee burden alleviation, such as indicating the store’s burden items (fees and delivery charges) on consumer receipts, discontinuing the best treatment demand, and sharing delivery riders’ location information.
Chairman Lee also mentioned, “If sufficient cooperation plans are not submitted by the platforms on the 11th, the results until the 11th meeting would effectively be the last,” adding, “We’ll need to decide on further steps based on the platforms’ proposals.”
Assuming a 12th meeting is held, if the store side opposes, “The overall opinion needs to be gathered for a decision, but the public interest committee might need to deliberate once more for a final decision.”
Meanwhile, Baemin and Yogiyo commented that they were committed to the review at the 11th meeting, but Coupang Eats has not expressed an opinion currently.
Baemin stated, “We have earnestly submitted and negotiated cooperation plans through differentiated commission suggestions to basic fee reductions in the Partnership Council talks and will remain committed to discussions until the end,” adding that “we believe agreeing to principle changes in membership benefit provision policies also marks a meaningful achievement.”
Yogiyo commented, “We have proactively demonstrated our determination to coexist with small business owners through commission reductions and differentiated fees,” and expressed their intent to continue cooperative efforts with store owners after the council meetings.