'Snowy Night Below Freezing + Hill + No Elevator' 9,000 Won Surcharge Chaos "Bosses Delivering Themselves"

Delivery Service Base Fee Increase from the Start of the New Year
Additional Surcharges for Weather, Nighttime, and Holidays
Self-Employed Say "Food Prices Will Ultimately Rise, No Way to Endure"

[Asia Economy Reporter Lee Seon-ae] "Since the beginning of the new year, I have been doing deliveries myself. The basic fee for delivery agency services increased by 500 won, and when the weather is cold or it snows or rains, surcharges are added. There are also surcharges for high floors in apartments and officetels. With these additional surcharges, the average delivery agency fee comes to about 6,000 won. After paying the delivery agency fee, the delivery app commission, and the payment agency fee, the reality is that selling a 20,000 won meal only nets a few thousand won. In this situation, raising prices is not easy, so we decided to hire a counter staff and do deliveries ourselves."

Delivery Fees at 30~40% of Food Prices

On the evening of the 4th, Kim Jin-su (alias), who runs a Korean restaurant in Yeongdeungpo-gu, complained like this as he headed out with plastic bags full of delivery food in both hands. Kim said, "We also use delivery agency services, but considering the surcharges, delivery fees are about 30 to 40% of the food price, so for areas where surcharges are expected to be high, we go there ourselves." In particular, Kim said, "As an extreme example, if it snows on a holiday and the temperature drops to minus 10 degrees Celsius, and the delivery destination is on a hill with a mixed-use apartment complex, and if the delivery agency has assigned only a few riders to that area, the delivery agency fee could actually reach up to 10,000 won." He added, "Of course, no one would deliver at such a cost, but if an order like that comes in, any restaurant would ask the consumer for understanding and cancel the delivery order," he said bitterly.

From the start of the new year, delivery agency fees and various surcharges have increased nationwide, deepening the distress of self-employed business owners. Delivery agencies such as Baesongdaehang Saenggakdaero, Barogo, and Vroong have raised delivery fees stepwise by region as of the 1st. The increase varies slightly depending on the operating area, but the agency fee rises by at least 200 won and up to about 1,000 won. The basic agency fee distance and additional surcharges per 100 meters have nearly doubled or the basic distance has been reduced. Weather and residential type surcharges have also increased. In addition to the existing rain surcharge, surcharges of up to about 3,000 won are applied depending on the type of building, including mixed-use apartment complexes with strict security procedures, apartments or officetels without elevators, or those with elevators but located on high floors.

On the 4th, when the ban on private gatherings of five or more people was expanded nationwide, a food delivery worker was busy moving around the quiet Myeongdong street in Jung-gu, Seoul during lunchtime due to the impact of the novel coronavirus infection (COVID-19). Photo by Mun Ho-nam munonam@

Ultimately, the Burden Falls on Consumers

On the ground, the increasing variety and rise of surcharges have deepened the complaints of self-employed business owners. Park Yeon-cheol (alias), who runs a snack bar in Guro-gu, said, "They say it’s dangerous to cross the bridge because of the wind, for high floors the elevator is delayed, if the area is not assigned many riders, it’s called an 'unpreferred' order, and there are surcharges for holidays," adding, "With all these surcharges, it’s confusing for us because the delivery agency fee changes with each order depending on the surcharges." Park continued, "We receive about 40 delivery orders a day, but we do about 20 deliveries ourselves and cancel some orders to minimize the use of delivery agencies."

Ultimately, the final burden inevitably falls on consumers. Choi Ji-in (alias), owner of a Korean restaurant in Gangbuk-gu, said, "I have difficulty delivering myself due to mobility issues," adding, "With the increase in delivery fees and app commissions, along with rising raw material costs and minimum wage, I had no choice but to raise food prices." She said, "We plan to continuously hold events offering discounts for customers who come directly to the store for takeout."

Kim Seo-hyung (alias), who runs a barbecue restaurant in Suwon, said, "Every time a delivery order comes in, I have to pay the surcharges demanded by the riders, but I don’t even know the proper standards," adding, "Even if I complain to the companies, there is no clear solution, and since the standards differ by region and company, we spend all day sharing information in communities and exchanging opinions about switching delivery agencies or relocating restaurants."

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