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Delivery App Commission Agreement Stalls Again, Further Talks Scheduled for November 7

Lifestyle / Kim SangJin / 11/05/2024 01:43 AM

 

 

[Alpha Biz= Reporter Kim Sangjin] Negotiations between delivery platforms and partner merchants over commission fees have once again ended without consensus in the Delivery App Mutual Cooperation Council. Despite proposals from Baedal Minjok (Baemin) and Coupang Eats, suggesting new tiered commission rates as part of a more flexible support plan, an agreement was not reached. The council plans to resume discussions on November 7 with the aim of reaching a final decision.

At today’s 10th meeting, held at the Korea Chamber of Commerce and Industry in Seoul, Baemin and Coupang Eats presented progressive options, including reduced commissions for smaller businesses. During the meeting, Coupang Eats General Manager Yoo Seong-hoon emphasized that the company aims to reduce commission burdens for small and micro businesses through a differentiated commission structure. He also indicated the plan would preserve "free delivery" options for consumers.

Under the proposed tiered system, merchants would be categorized by revenue within the app, with lower-revenue merchants subject to lower commission rates. Previously, Baemin submitted a plan to keep its standard commission at 9.8%, while implementing rates between 2% and 6.8% for the bottom 40% of merchants in terms of sales.

While Baemin and Coupang Eats are expected to adopt the tiered commission system, disagreements remain regarding specifics, as merchants continue to press for a 5% cap on commission rates.

 

 

 

AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)

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