Usage Rate of Public Food Delivery Apps Remains Low Despite Cheap Commission Fees | Be Korea-savvy

Usage Rate of Public Food Delivery Apps Remains Low Despite Cheap Commission Fees


A worker at a restaurant in central Seoul makes boxed lunches to be delivered on Aug. 31, 2020. (Yonhap)

A worker at a restaurant in central Seoul makes boxed lunches to be delivered on Aug. 31, 2020. (Yonhap)

SEOUL, Dec. 30 (Korea Bizwire)The usage rate of food delivery apps developed by municipal governments to reduce the burden on small businesses remains low despite lower commission fees compared to private delivery apps, a report said Thursday.

According to a survey of about 3,000 dining businesses conducted by the Korea Agro-Fisheries Trade Corp. (aT), 926 businesses, or 30.9 percent of the total, were using food delivery platforms.

Among the platforms being used, the share of public delivery apps remained low at 18.1 percent.

The average commission fee per order stood at 1,545 won, about half of the fee for privately owned delivery apps like Baedal Minjok (Baemin), Yogiyo and Coupang Eats.

However, the average daily order volume remained low at only 2.1 orders, only 14.4 percent of the order volume for users of private delivery apps.

In response to a question asking about the biggest problem with using public delivery apps, 42.5 percent picked a low level of public awareness, followed by inconvenient screen layout and design at 6.3 percent, and system errors such as delay in time at 3.1 percent.

Among those who said they used private delivery apps, 57.8 percent cited the low level of public awareness as the reason why they do not use public delivery apps.

As many as 15 cities and provinces, excluding Jeju and Sejong had released their own food delivery apps as of August.

J. S. Shin (js_shin@koreabizwire.com)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>