Delivery riders to boycott Coupang Eats on day of Korea's first World Cup match

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Delivery riders to boycott Coupang Eats on day of Korea's first World Cup match

Union members of delivery platform service providers under the Korean Confederation of Trade Unions hold a press conference on Wednesday in front of Coupang’s headquarters in Songpa District, southern Seoul, announcing that they will boycott Coupang Eats starting Thursday, the day of Korea’s opening game against Uruguay for the 2022 Qatar World Cup. [YONHAP]

Union members of delivery platform service providers under the Korean Confederation of Trade Unions hold a press conference on Wednesday in front of Coupang’s headquarters in Songpa District, southern Seoul, announcing that they will boycott Coupang Eats starting Thursday, the day of Korea’s opening game against Uruguay for the 2022 Qatar World Cup. [YONHAP]

 
Delivery riders announced that they will boycott Coupang Eats on Thursday, the day of Korea’s first match in the 2022 Qatar World Cup against Uruguay.
 
Riders participating in the strike cited the company's cutting of their basic delivery fees as the primary reason for the boycott.
 
Coupang Eats cut its basic delivery fee for delivery riders from 3,100 won ($2.40) per delivery to 2,500 won last year and instead raised the standard fare calculated by distance. Essentially, riders now need to drive further distances to earn higher payments.
 
The food delivery service's unwillingness to actively engage in collective bargaining was another reason given by the riders.
 
“We will go on strike by refusing to receive deliveries from Coupang Eats on Thursday,” said a spokesperson from the union of delivery platform service providers under the Korean Confederation of Trade Unions.
 
Korea is set to play their opening game against Uruguay on Thursday, which will be broadcast in Korea at 10 p.m.
 
The union members are requesting that the company raises the basic delivery fee to 4,000 won and decreases the frequency of promotions, such as giving out discount coupons, to ensure a stable income for delivery riders.
 
The delivery market in Korea has rapidly expanded due to the Covid-19 pandemic, which is now slowing down as the country shifts to an endemic phase.
 
The monthly active users (MAU) for Korea’s three delivery mobile applications, Baedal Minjok (Baemin), Yogiyo and Coupang Eats, last month reached a total of 30.23 million, which fell 10 percent compared to the previous year.
 
Coupang Eats reported the sharpest drop as its MAU plunged 33 percent on year.
 
Because the market is shrinking, Coupang Eats is showing reluctance to raise delivery fees despite the consistent cries by delivery riders.
 
“Increasing delivery fees may be a big burden on both customers and restaurant owners, so it should be discussed carefully,” said a spokesperson for Coupang Eats.
 
With the conflict unlikely to be resolved anytime soon, other delivery apps such as Baemin and Yogiyo are expected to benefit from the planned strike.
 
“Baemin was capable of reaching an agreement with the union of delivery platform service providers due to the company’s large market share,” said a spokesperson for Baemin.
 
“But in the case of Coupang Eats, the company has been facing losses and a declining number of users.”
 
Another issue on the table in relation to delivery riders is the improvement of working conditions for workers on delivery applications.
 
Democratic Party Rep. Jang Chul-min proposed a bill on Tuesday to protect workers on digital platforms, freelancers and those categorized as special employment types, such as delivery riders.
 
“The conflict originates from the problem of legislating laws related to workers on digital platforms,” said Kwon Hyuk, a professor at the Pusan National University Law School.
 
“The hiring environment is changing, but the basic frame of labor-management relation remains the same. Improvements in laws and regulations to adjust to the changing times are needed.”

BY YU SUNG-KUK, CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]
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