The surge in quick commerce services, which promise delivery within an hour, has transformed consumer convenience but at a significant human cost. (Image courtesy of Yonhap)
SEOUL, Nov. 18 (Korea Bizwire) – An individual referred to only as Lee, who began his career as a delivery worker three years ago, says the pressure to meet tight deadlines has become nearly unbearable.
“We need to complete at least four deliveries per hour to make ends meet,” said Lee, who acknowledged that running red lights and speeding have become routine practices. “It’s just part of the job now.”
The surge in quick commerce services, which promise delivery within an hour, has transformed consumer convenience but at a significant human cost.
Last year, motorcycle-related accidents, including those involving delivery vehicles, reached 16,567 incidents, ranking third behind passenger cars (131,921) and freight vehicles (24,409), according to the Korea Road Traffic Authority.
These accidents resulted in 392 deaths and 21,318 injuries. Nearly one-third of accidents—4,955 cases or 29.9%—occurred between 6 p.m. and 10 p.m., coinciding with peak delivery hours. A union survey indicates delivery workers experience an average of two traffic accidents annually.
The pressure to speed through city streets stems from plummeting delivery fees. During the COVID-19 pandemic, when demand exceeded supply, workers earned 8,000-10,000 won per delivery during weekday lunches. Today, that figure has fallen to 3,000-3,500 won as delivery platforms cut fees to maintain profitability.
“When sales declined after entering the endemic phase of Covid, platforms responded by lowering delivery fees while increasing commissions for small business owners, drawing widespread criticism,” Lee explained.
Current earnings hover around 12,000-14,000 won per hour before deducting insurance and fuel costs, barely exceeding minimum wage (9,860 won per hour).
According to the Korea Institute for Industrial Economics and Trade, delivery workers averaged 57 hours weekly as of the end of 2022, earning about 2.56 million won monthly—barely more than minimum wage for a 40-hour week.
The financial pressure leads many to forgo crucial insurance coverage. Only 40% of delivery workers carry commercial transport insurance, meaning six in 10 operate without coverage, risking severe legal consequences in accidents.
The quick commerce boom has also dealt a blow to neighborhood businesses. A study by the Korea Institute for Industrial Economics and Trade found that after the launch of Baemin’s “B Mart” service in five regions between July 2020 and August 2021, nearby convenience stores saw sales drop 8.4%, supermarkets 9.2%, and coffee shops 8.5%.
The impact is particularly severe in Seoul, where neighborhood business closure rates rose to 2.9% in the second quarter of this year, up from 2.1% in the same period of 2022.
“At the current pace of quick commerce expansion, few small businesses will survive,” said Cha Nam-soo, policy director at the Korea Federation of SMEs. “We urgently need policy alternatives, including the introduction of public delivery services.”
M. H. Lee (mhlee@koreabizwire.com)
