"Delivery Rider Annual Salary of 100 Million Won? ... Only 15 out of 33,000"

On the 2nd, delivery motorcycles were lined up at a local center of a delivery agency in downtown Seoul. As the novel coronavirus disease (COVID-19) resurges, the volume of delivery orders has surged, causing ongoing difficulties in securing delivery personnel. According to Baedal Minjok, the total number of orders during the last week of August, from the 24th to the 30th, when COVID-19 spread was severe, increased by 26.5% compared to the last week of July (20th to 26th). Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Moon Hyewon] Rider Union, a labor union for delivery workers, recently refuted reports claiming the “era of riders earning 100 million won annually,” stating that “the reality is different from the facts.”

On the 3rd, Rider Union and Media Demos held an urgent online press conference titled “Delivery Riders Earning 100 Million Won Annually? Here is the Truth,” dismissing it as “merely promotional claims by large delivery agencies to attract more riders.”

Park Jeonghoon, chairman of Rider Union, pointed out, “Recently, due to the COVID-19 pandemic, more people are entering the delivery industry. New riders who are drawn in by such promotional media reports may become greedy when comparing their actual income, which could lead to speeding or overworking their bodies through long hours.”

The origin of the claim about the “era of riders earning 100 million won annually” stems from Coupang Eats, a delivery agency, recently releasing the top earnings of its affiliated riders. Chairman Park said, “The data released by Coupang Eats was simply calculated based on the top 15 earners only during weekends, when delivery demand is highest, and limited to the Gangnam 3 districts in Seoul. Considering the total number of riders is 33,000, it is questionable whether being a rider is truly a high-income job.”

Regarding claims that rising delivery fees are increasing the burden on self-employed business owners, Rider Union attributed this to promotional competition among large delivery agencies. Chairman Park explained, “Recently, as Coupang Eats entered the delivery market and offered many promotions such as rain surcharges, riders flocked to them. To prevent losing riders to Baedal Minjok and Coupang Eats, competitive promotions were implemented, making delivery fees appear to have surged, but the overall delivery market fees have not actually increased.”

He continued, “The basic delivery fee for riders was about 3,000 won per delivery 10 years ago and remains the same now. Considering that inflation has risen nearly 20% and the minimum wage has increased 200 times during that period, the fee has effectively been reduced. In the past, when each restaurant directly employed delivery workers, the food price always included the delivery fee, but as delivery agencies became more active and delivery worker employment was outsourced, the delivery fee burden became more visible.”

As a fundamental solution, he advocated for the introduction of a “safe delivery fee” around 4,000 won. The safe delivery fee refers to a delivery fee level that allows for safe driving. Chairman Park stated, “Currently, riders’ income is unstable, with a low basic delivery fee that fluctuates wildly depending on promotions. If the basic delivery fee is adjusted to a level that allows safe driving, it can prevent riders from crowding in one place or performing deliveries recklessly due to promotions, thereby preventing delivery delays and traffic accidents in advance.”

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