Delivery motorcycles (Image courtesy of Yonhap)
SEOUL, Jun. 3 (Korea Bizwire) – Baemin, the leading food delivery app in South Korea, will start charging “packaging fees” for takeout orders from July 1.
While existing partners will be exempt from these fees until March 2025, the move suggests that packaging intermediation services may eventually become paid offerings across the board.
According to industry sources, Baemin recently notified its partners that from July 1, new restaurants joining the platform would be subject to these new fees.
Restaurants that complete their registration by June 30 will have these fees waived until March 31, 2025.
The packaging fee rate for takeout orders is set at 6.8%, equivalent to Baemin’s existing delivery commission.
For example, if a chicken restaurant receives an order worth 20,000 won, the owner will now be required to pay an additional 1,360 won in fees.
Notably, Yogiyo, a competing delivery app, already charges fees for takeout orders, while Coupang Eats has followed Baemin’s lead by deferring fee implementation until March 2025.
In April, Baemin faced criticism for announcing plans to monetize packaging services through the Fair Trade Commission’s “self-regulation compliance review” for delivery apps, a move seen as a retreat from mutual growth policies.
The company’s current move aligns with its previously stated intention to introduce paid packaging services.
While existing restaurant partners will be exempt until next year, they are expected to start paying packaging fees after March 2025.
A Baemin representative stated, “Whether it’s packaging fees for takeout orders or delivery, using our app system is the same,” adding that “a gradual transition to a paid model for all services is anticipated.”
Restaurant owners have voiced their opposition to the move. Some owners have noted that regulars often opt for takeout orders to avoid the higher delivery fees, but they would now have to pay fees even for takeout orders.
Owners concur that the added fees will inevitably force them to raise food prices. One restaurant operator said, “We used to offer discounts for takeout orders as a gesture of goodwill, but with increased fees, we’ll have no choice but to reflect it in our menu prices.”
Baemin’s decision to monetize packaging services is seen as a countermeasure to offset losses from its free delivery policy, introduced to compete with Coupang Eats.
As the platform with over 60% market share, Baemin’s cost burden from free deliveries is significantly higher than its rivals’.
Last month, Baemin also launched a trial run of “Baemin Club,” a subscription service aimed at locking in consumers, though currently free, it is expected to transition to a paid model in the future.
Ashley Song (ashley@koreabizwire.com)
