This undated file photo shows scooters parked at a center for the food delivery platform Baemin. (Image courtesy of Yonhap)
SEOUL, April 19, (Korea Bizwire) — South Korea’s leading food delivery platform, Baemin, has drawn public backlash after introducing commission fees on takeout orders, a move critics say could burden small businesses and consumers while signaling the platform’s shifting business strategy.
Starting April 14, 2025, Baemin began charging intermediary service fees on takeout orders, ending a five-year exemption policy. The decision comes despite opposition from franchise owners and consumer advocacy groups, and has already led some merchants to scrap customer discounts to offset rising costs — fueling consumer dissatisfaction.
Baemin, operated by Woowa Brothers, defended the new policy by citing infrastructure costs. “Takeout orders require the same level of development, maintenance, and server operations as delivery orders,” the company said, noting that the lack of commission revenue had stunted the service’s growth.
The change follows a similar controversy in mid-2024, when Baemin faced fierce criticism for attempting to hike delivery commissions. That episode forced the company to implement a tiered fee structure in response to public pressure.
Analysts say Baemin’s latest move reflects pressure to improve profitability amid intensifying competition from rivals like Coupang Eats. While Baemin’s 2024 revenue rose 27% to 4 trillion won (approx. $3 billion), its operating profit fell 8% — signaling margin pressures.
Some observers believe Baemin is leveraging its market dominance and customer “lock-in effect,” as many merchants find it difficult to leave the platform without sacrificing exposure to a majority of local consumers.
The company’s German parent, Delivery Hero (DH), is also under scrutiny. Baemin accounted for 24% of DH’s global revenue in 2024, the highest share among all its global units.
Image from Delivery Hero webpage
Over the past two years, DH has extracted nearly 1 trillion won from Baemin through dividends and share buybacks, raising concerns that Baemin is being used to plug financial gaps at the global level. Bloomberg recently reported that Delivery Hero is doubling down on profitability efforts in Asia and the Middle East.
Critics argue that international ownership limits the company’s sensitivity to Korea’s business ecosystem. “Foreign parent companies may not fully grasp the cultural and socioeconomic responsibilities of operating in Korea,” said Lee Sung-hoon, a professor at Sejong University’s Graduate School of Business. “More localized understanding is needed, especially regarding the vulnerabilities of small business owners.”
Baemin said it plans to invest 30 billion won annually in promotions to boost its takeout service, pledging to reinvest commission revenues into marketing and customer benefits. The company also emphasized that takeout orders remain more profitable for merchants than delivery, as they avoid rider fees.
Still, the move underscores the delicate balance platforms face between profitability and public trust in South Korea’s fiercely competitive food delivery market.
Ashley Song (ashley@koreabizwire.com)
