Delivery service agencies turn up heat on small businesses with 'weather surcharge' in scorching summer

Home > Business > Industry

Delivery service agencies turn up heat on small businesses with 'weather surcharge' in scorching summer

Published: 04 Jul. 2025, 14:05 Updated: 04 Jul. 2025, 16:22

Audio report: written by reporters, read by AI

A delivery driver picks up delivery orders at a restaurant in downtown Seoul on June 29. [YONHAP]

Did you know that restaurant owners have to pay extra out of pocket to get your food to you when the weather is scorching hot? Apparently, no one did — not even the restaurant owners.

The “weather surcharge” system, which adds extra fees for delivery workers during adverse weather, is spreading to delivery agencies this summer, increasing the burden on small business owners highly dependent on delivery orders made through online apps.

These fees are charged not by the app services to the restaurants but by the delivery service agencies that hire out deliverers. Unlike food delivery apps that cover this surcharge if their own drivers make the delivery, agencies are passing the additional fees on to restaurant owners.

Particularly with “heat surcharges” during summer months, the added cost and temperature thresholds vary by company, causing confusion.

A small business owner who runs a sandwich franchise in Gwangju recently received a notice from a delivery agency about a surcharge. The notice stated that if the daytime temperature exceeds 32 degrees Celsius (89 degrees Fahrenheit), he will have to pay an extra 500 won (40 cents) per delivery.

“There have been surcharges for weather events like heavy rain or snow, but this is the first time in my five years of business that I’ve had to pay extra due to a heat wave,” the owner said. “The platform commission fees are already high, and now this new surcharge is a big hit.”

Delivery workers drive past a street in Gangnam District, southern Seoul, on June 17. [YONHAP]

Delivery agencies add heat surcharges

Major delivery service agencies such as Vroong, Barogo and AsOneThink have recently introduced heat surcharges as summer sets in, according to the food service industry on Thursday.

Restaurant owners must use these agencies when customers choose the "store delivery" option on apps like Baemin or place orders by phone directly to the store.

These agencies are charging an additional 500 to 1,000 won per delivery when daytime highs exceed 30 to 33 degrees Celsius, according to store owners. For dessert cafes, where the minimum order is around 5,000 won, the surcharge can exceed 10 percent of the order value.

Small business owners say that with a substantial portion of their orders coming through direct channels, they have no choice but to use delivery agencies even if surcharges apply.

The percentage of restaurants using these agencies rose from 5.4 percent in 2018 to 24.1 percent in 2023 and 29.3 percent last year, according to the Korea Rural Economic Institute’s survey on the restaurant business in 2024.

“Even with the same agency, surcharge rates differ by delivery area,” said a cafe owner in Daegu. “I’m paying the fees with no real choice.”

Democratic Party lawmakers attend a briefing on an agreement reached by the social dialogue body on delivery platforms at the National Assembly in Yeouido, western Seoul, on June 19. [NEWS1]

Lack of clear standards, growing burden

Food delivery apps that previously introduced weather surcharges bear the cost themselves.

Baemin’s operator, Woowa Brothers, pays riders an additional 500 won per delivery when the temperature is below minus 5 or above 33 degrees Celsius based on the national forecast, without passing the cost on to restaurants. Coupang Eats follows a similar model.

In contrast, delivery agency surcharges lack clear criteria, and the cost burden falls on restaurant owners.

The agencies argue that this is an extension of variable fees based on distance and order volume.

“Even within the same region, weather conditions can vary, affecting delivery environments, so it makes sense to apply different rates,” said a Vroong representative.

Delivery workers pick up food parcels from restaurants at a street in Gangnam District, southern Seoul, on June 17. [YONHAP]

Experts say the agencies should be part of broader social discussions, given their significant impact on the cost burden for small businesses.

Although the social dialogue body on delivery platforms — formed in February and led by the Democratic Party’s committee on people’s livelihoods — includes Woowa Brothers, the Korea Franchisee Union and an association of business owners for fair platforms, delivery agencies were excluded.

This new body issued a preliminary agreement to waive intermediary fees for orders under 10,000 won and implement tiered delivery fee support, but these terms don’t apply to delivery agencies.

“Delivery agencies play an intermediary role between riders and business owners, but their fee structures and surcharge criteria are often unclear,” said Hwang Yong-sik, a professor of business administration at Sejong University. “There needs to be a set of standards that both riders and small business owners can agree on.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NOH YU-RIM [[email protected]]