Food Delivery Apps Declare War on Commission Fees | Be Korea-savvy

Food Delivery Apps Declare War on Commission Fees


Food delivery applications have started a war on commissions to draw in new members. (Image : Yonhap)

Food delivery applications have started a war on commissions to draw in new members. (Image : Yonhap)

SEOUL, July 30 (Korea Bizwire)Food delivery applications have started a war on commissions to draw in new members.

‘Baedal Minjok’, which ranks first in market share, decided to eliminate commissions on instant payment for the first time in the business. One of its main competitors, ‘Yogiyo’, announced that they would also release a product that doesn’t have commissions.

Yogiyo revealed that they would be launching products that do not have ordering commissions or other additional charges. The associated restaurants only pay a monthly fee, without commissions related to the payment method or the number of orders. Once the plan is launched, restaurants that want to can change their contract or join as new members.

Yogiiyo says the members who join the service will have another option to select from, widening their choice. “The fixed fees for each month will be cheaper than the monthly advertising fees of other delivery services. We will announce the rate at the time of our official release.”

Yogiyo released a test run of a product with a 0 percent ordering commission this month, and currently 817 restaurants are using it.

By M.H. Lee (mhlee@koreabizwire.com)

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