Delivery app Baemin to exempt brokerage fee for small orders

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Delivery app Baemin to exempt brokerage fee for small orders

A Baemin notice sticker is put up on a restaurant in Seoul on Jan. 22. [NEWS1]

A Baemin notice sticker is put up on a restaurant in Seoul on Jan. 22. [NEWS1]

 
Woowa Brothers, operator of online delivery platform Baedal Minjok, or Baemin, said Thursday it will exempt brokerage fees for orders worth 10,000 won ($7.26) or less, as part of its 300 billion won social inclusion initiative aimed at easing financial burdens on small business owners.
 
The company reached an interim agreement with local trade associations, including the Korea Franchise Union, through mediation by the ruling Democratic Party.
 

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Under the agreement, Woowa Brothers will exempt all brokerage fees for orders of 10,000 won or less and offer support for delivery fees. It will also provide differential fee support for orders between 10,000 won and 15,000 won.
 
Detailed implementation plans will be announced later.
 
Woowa Brothers said the initiative is designed to support small delivery orders in response to the rise in single-person households and to reduce the financial strain on mom-and-pop businesses.
 
The company plans to invest 300 billion won in the program over the next three years.
 
"This interim agreement will ease the burden on participating businesses while creating new growth opportunities," said Kim Bum-seok, chief executive officer (CEO) of Woowa Brothers. "As single-person households increase, we believe that supporting small orders will benefit consumers while helping business owners by boosting order volume and reducing costs."
 
Baemin is the leader in Korea's food delivery app market, reportedly accounting for about 60 percent, followed by GS Retail's Yogiyo app and Coupang Eats, the food delivery arm of e-commerce giant Coupang.
 
 

Yonhap
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