[Beyond the Field] Issues Arising When Delivery Fees Are Included in Total App Commissions

"When a business owner receives a 20,000 won order through a delivery app, over 6,000 won is paid to the delivery app operator. After deducting various costs from the remainder, many self-employed people cannot even take home their own wages." This remark, made by Minister of SMEs and Startups Lee Soyoung during a meeting with small business associations, raises the issue of platform fees while also sparking thoughts on possible solutions. It is an undeniable fact that many businesses registered on delivery apps only get to keep the money left after more than 6,000 won is deducted from each 20,000 won order. In percentage terms, 6,000 won out of 20,000 won is 30%—a rate many would consider excessively high. The "total commission cap system," which is currently being discussed in the National Assembly, proposes to lower this to 15%. At first glance, this logic appears reasonable, arguing that limiting delivery app profits is necessary to promote mutual growth with small business owners.

However, it is difficult to solve the underlying issue with this approach. That is because the 6,000 won paid by small business owners does not go entirely to the delivery app operator. The total fee also includes the platform's brokerage fee, the payment processing fee paid to the payment gateway (PG), and the delivery fee, which is the rider's wage. Breaking down exactly how this amount is structured reveals the tangled nature of the problem.

Currently, applying the fee structure in effect by Baemin (Baedal Minjok) and Coupang Eats, the brokerage fee charged to a vendor for a 20,000 won order is capped at 1,560 won (7.8%). The business may pay up to 3,400 won in delivery fees. Payment processing fees amount to 600 won (3%), and with value-added tax on top, the total amount paid exceeds 6,000 won. Most notably, the delivery fee deserves attention; more than half of the 6,000 won goes to the rider as compensation. For this reason, concerns have been raised that if current discussions about capping the total of brokerage fees, delivery fees, and payment processing fees go forward, the largest share—the rider’s earnings—would be reduced.

If delivery fees (the rider’s wages) are included in the total fee cap, there is another conflict: this would clash with the government’s efforts to promote public delivery apps in order to lower costs for small businesses. In the case of "Ttaenggyeoyo," the brokerage fee is set at 2%, but the in-house delivery service "Ttaeng Delivery" charges the vendor a 3,300 won delivery fee. Including payment processing and delivery fees for a 20,000 won order, public delivery apps still impose a fee burden of over 20%. If a 15% total commission cap law is enacted, public apps would also become subject to regulation.

Because of these issues, voices at the grassroots level are saying delivery fees—riders’ wages—should not be treated the same as platform fees. The two should be separated in policy discussions. If regulations on app service fees proceed as currently proposed, the issue would no longer simply be reducing costs for businesses; it could reduce riders’ earnings and threaten their livelihoods. The delivery app ecosystem links small businesses, riders, consumers, and platforms. To ensure neither small businesses nor riders suffer, delivery fees should be separated from platform commissions when formulating policy alternatives.

This content was produced with the assistance of AI translation services.