Delivery-related startups have entered the competition with Baedal Minjok (Baemin) and Coupang Eats, promising to reduce commission burdens for self-employed individuals. Whether they can change consumer ordering habits is expected to determine the success of their new businesses.
According to a report by ChosunBiz on the 4th, Otter Korea, which operates a delivery integration program, is set to launch its delivery system 'Otter Order' utilizing QR (Quick Response) codes. This service generates and distributes unique QR codes for each restaurant, encouraging consumers to order food through the corresponding QR code. The simple ordering platform O2O Payment is also operating a similar service called 'Order Talk.'
For example, if a restaurant adopts a QR code-based ordering system, consumers can order food through Baemin or Coupang Eats while being provided with pamphlets or promotional materials that include the printed QR code. Subsequently, when reordering, consumers are encouraged to recognize the QR code and place their orders directly.
The key to the service is to lower the platform usage fees that burden self-employed individuals like restaurant owners. In a survey conducted earlier this year by the Consumer Welfare Network involving 502 restaurant owners in the foodservice industry, delivery app commission fees were identified as the biggest burden in business operation, scoring 5.68 out of 7.
Currently, Baemin and Coupang Eats charge business owners a commission fee ranging from 2% to 7.8%, based on their sales brackets. When a consumer orders a meal priced at 20,000 won, they may spend as much as 1,716 won solely on delivery app fees and VAT.
These startups earn revenue by receiving a portion of the fees from the payment service providers (VAN) when orders are placed through the QR codes they create or through the costs associated with using and managing the tablets or programs provided to restaurants. These costs are cheaper than existing platform fees, reducing the burden on self-employed individuals while securing revenue for the startups.
The crux of the matter is whether the QR code ordering method can change existing consumer behavior. According to retail analytics services Wise App and Retail, the number of people aged 20 and over in Korea who have paid via credit card, debit card, or bank transfer to services like Baedal Minjok, Coupang Eats, Yogiyo, and Ttanggeoyo reached 23.51 million.
A self-employed individual running a jokbal restaurant noted, "Despite local governments developing public delivery apps claiming to reduce commission burdens, have they not become useless because consumers do not seek them?" adding, "The QR code idea is good, but we need to see if consumers will break away from existing methods."
Startups plan to use the expenses saved by self-employed individuals to encourage consumers to order by offering discounts or additional menu items.
One official explained, "Just as delivery apps encourage review writing events, I believe we can actively engage consumer participation, which could serve as an alternative to reduce the platform commission burdens on self-employed individuals."