Workers carry takeout lunch boxes in central Seoul on Sept. 4, 2020. (Yonhap)
SEOUL, April 5 (Korea Bizwire) — An increasing number of South Koreans are choosing takeout rather than delivery when they use food delivery apps. By doing so, they can save on delivery fees.
According to Woowa Brothers, the operator of the nation’s top food delivery app, Baedal Minjok, the number of takeout orders recently marked a remarkable growth of about 200 percent.
Another food delivery app, Yogiyo, also saw the volume of takeout orders soar exponentially in December 2020 compared to the first month of last year.
An increasing number of consumers are opting for takeout for various reasons, including delays in delivery time and the low quality of delivery service.
In particular, there are substantial complaints concerning ‘delivery tips.’ The average delivery tip is about 3,000 won. An additional charge is levied if distance increases.
As delivery apps have become commonplace, they are offering fewer discount benefits, while delivery fees continue to inch higher. This comes along with the increase in delivery fees that restaurant owners have to pay to delivery service providers.
The delivery fee, in general, is paid on a shared basis by restaurants and consumers. Delivery fees have continued to increase as the demand for delivery service is growing at an explosive pace.
Against this backdrop, restaurants are welcoming takeout orders.
For orders created through food delivery apps such as Baedal Minjok and Yogiyo, restaurants have to pay advertising, brokerage and payment commissions.
When consumers select delivery orders, the restaurants also have to pay delivery fees to the delivery service providers.
With this in mind, the prevailing view is that takeout orders are more profitable for restaurants since they are free from delivery fees. Some restaurants offer 5 to 10 percent discounts when consumers opt for takeout orders.
J. S. Shin (js_shin@koreabizwire.com)
