Why Delivery Costs Go Up
Why Delivery Costs Go Up
  • Joo Jung-eun
  • 승인 2022.04.05 17:49
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  As delivery service applications reorganize their rate plans, increases in delivery costs are concerned. Recently, consumers who were dissatisfied with the high delivery tip are creating new ways. People look to others who want to use delivery services in their neighborhood. In other words, they create a “delivery group purchase” ordering food from one store together to reduce delivery tip charges. Another case is that consumers participate in a “delivery cut-off challenge.” People try to use packaging services more instead of delivery services.
  Why is the delivery cost increasing? Because the rate plans are being revamped. Baedal-ui minjok, the famous delivery service app in Korea, had a 12% brokerage fee and a delivery tip of 6,000 won. Regarding reorganized rate plans, businesses can choose between “basic,” “discount,” and “integrated.” The basic rate plan is a 6.8% brokerage fee, and a 6,000 won delivery fee. On the surface, it seems that the fee has been reduced. However, this is more expensive than the current rate with a discount applied (Discount promotion will end on March 21). “Coupang eats,” a delivery service app in Korea, also had a brokerage fee of 1,000 won and a delivery fee of 5,000 won. The new rate plans have “basic,” “discount,” and “combination.” The basic rate is a 9.8% brokerage fee with a 5,400 won delivery fee. Thanks to the discount promotion, Coupang eats reduced the 15% brokerage fee and 6,000 won delivery fee to the brokerage fee of 1,000 won and 5,000 won delivery fee (the discount promotion is over in Seoul).
  A survey of Yeungnam University students revealed almost all are currently feeling burdened by the delivery tips. 95% of students responded that they had abandoned an order because of delivery tips. 73% said that they give up an order when delivery tips are more expensive than 3,000 won. Instead of delivery, students go to a restaurant for take-out, order foods together to split delivery tips, or cook meals themselves. About the increasing delivery costs, students said that “The continuously rising delivery tips is burdensome.”, “A platform for convenient use has been transformed into a platform for profit.” Others answered, “An unavoidable problem because the economy is getting harder.”, “It is inevitable because of the minimum wage increase.”


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