[Alpha Biz= Reporter Kim Jisun] Woowa Bros, the operator of Baemin, has refuted claims that the recent restructuring of the Baemin1 Plus fee plan resulted in a 44% increase in merchant fees, stating that such assertions are exaggerated.

In a notice on the 14th, Woowa Bros stated, "The claim that the restructuring of the Baemin1 Plus fee plan resulted in a 44% increase in merchant fees is exaggerated."

On the 10th, Woowa Bros announced that starting next month, the brokerage fee rate for Baemin1 Plus will be increased from the current 6.8% to 9.8%, a rise of 3 percentage points.

Some have argued that this change represents a "44% increase in delivery fees" by Woowa Bros.

In response, Woowa Bros explained that this calculation only reflects the change in brokerage fees from 6.8% to 9.8%, making the increase appear more significant.

Woowa Bros emphasized, "The recent fee restructuring applies only to Baemin1 Plus, so the actual change in merchants' burdens must consider both the brokerage fees and the delivery costs. The fee restructuring includes both an increase in brokerage fees and a decrease in delivery costs, with the delivery costs for merchants being reduced by 100 to 900 KRW per order, depending on the region."

Baemin1 Plus is a service where Baemin handles both order brokerage and delivery, with Baemin setting the delivery fee that merchants pay.

Instead of increasing the brokerage fee rate, Baemin plans to reduce the delivery fees that merchants pay by 100 to 900 KRW per order, depending on the region.

The delivery fees that merchants pay, which currently range from 2500 to 3300 KRW, will be reduced to 1900 to 2900 KRW, a decrease of up to 24%. For instance, in Seoul, the delivery fee that merchants pay will drop from 3200 KRW to 2900 KRW, a reduction of 300 KRW (about 9.3%).

According to Woowa Bros, when considering the total cost (brokerage fee, merchant delivery fee, payment settlement fee, and VAT), the overall increase in merchants' burden for orders ranging from 10,000 to 25,000 KRW is approximately 0 to 7.9%.

Woowa Bros explained that the impact of this fee restructuring is limited.

After the increase in the brokerage fee rate, Baemin's brokerage fee rate (9.8%) will be the same as its competitor Coupang Eats (9.8%) and lower than Yogiyo (12.5%).

 

 

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