"Transparency Needed in Fees and Advertising Costs"… Delivery Platforms and Partner Stores Hold Win-Win Talks

Platform Companies Keep Commission and Advertising Fee Calculation Criteria Confidential
Partner Stores Also Demand Sharing of Order Customer Data

Businesses listed on delivery platforms raised their voices, calling for increased transparency in commission and advertising fees.

On the 23rd, participants from both sides are taking a commemorative photo at the launch ceremony of the Delivery Platform-Merchant Win-Win Council held at the annex of the Government Seoul Office in Jongno-gu, Seoul.
[Photo by Yonhap News]

The Ministry of SMEs and Startups announced that it held the 3rd meeting of the ‘Delivery Platform-Listed Businesses Win-Win Council’ on the 27th at the Shinhan Bank headquarters in Jung-gu, Seoul.

The listed businesses argued that information related to delivery platforms’ commission and advertising fees should be transparently provided. Platform companies currently keep the criteria for calculating commissions and advertising fees confidential. It was also pointed out as a problem that when platform companies offer consumers ‘free delivery’ benefits, the delivery fees borne by the listed businesses are not disclosed to consumers.

Additionally, small business owners listed on the platforms pointed out difficulties in managing regular customers because they cannot access order customer data. Along with this, they complained that due to unfair practices by delivery platforms?such as inducing consumers to choose platform orders over store delivery orders or demanding that listed businesses set the same or better transaction conditions than other delivery platforms?free service choice has become difficult, and burdens such as higher commissions have increased.

Through this 3rd meeting, the listed businesses and delivery platforms shared an awareness of the need for improvements on some topics, including data sharing. Improvement plans will be specified and presented later.

Attendees at the meeting included platform companies such as Baedal Minjok, Coupang Eats, Yogiyo, Ttaenggyeoyo, and Meokgaebi; listed business groups such as the Korea Federation of Small and Medium Business, Korea Foodservice Industry Association, National Franchise Owners Association, and National Merchants Federation; public interest committee members including Professor Lee Jeonghee of Chung-Ang University’s Department of Economics, Secretary-General Lee Jeongsu of the Korea Consumer Organization Council, Deputy Director Lee Dongju of the Korea Institute for Startup & Entrepreneurship Development, and Professor Jeong Yugyeong of Sejong University’s College of Hotel and Tourism; as well as special committee members from the Ministry of SMEs and Startups, the Fair Trade Commission, the Ministry of Strategy and Finance, and the Ministry of Agriculture, Food and Rural Affairs.

Meanwhile, following Ttaenggyeoyo (Shinhan Bank)’s announcement of measures to revitalize public delivery applications at the 2nd meeting, Meokgaebi made a presentation at this meeting requesting the government side to explore realistic support measures for the growth of public delivery apps and institutional backing to establish a sound competitive system in the delivery platform market. Meokgaebi is a public delivery app operating in 11 local governments with a commission rate of 1.5%.

At the next 4th meeting, opinions from delivery platforms and listed businesses will be exchanged regarding ‘measures to ease commission burdens’ such as intermediary and payment fees, and ‘incentives for participation in win-win plans.’

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