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    Home > Food News > Food Articles > Still going up?

    Still going up?

    • Last Update: 2022-01-21
    • Source: Internet
    • Author: User
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    Amid the epidemic , fewer people eat out, which has boosted the development of the food delivery industry
    .
    Controversy over takeaway delivery fees has been ongoing in South Korea
    .
    A few days ago, several major food delivery platforms raised their delivery fees one after another, causing dissatisfaction among merchants and consumers
    .
     
    The reporter came to the rider dispatch center, the largest food delivery platform in South Korea, located in Gangnam District, Seoul
    .
    Recently, including this company, South Korea's major food delivery platforms have raised the basic delivery fee by up to 1,100 won, and the average delivery fee per order has reached about RMB 32, which is twice the level in 2020
    .
    Nowadays, the food delivery market is booming, and the supply of riders is in short supply.
    All platforms can only carry out a "battle for people" through high commissions, and labor costs continue to increase.
    Therefore, the increase in delivery fees is also regarded by the industry as an inevitable result
    .
     
      However, the catering businessmen are suffering
    .
    The delivery fees of Korean food delivery platforms are shared by merchants and consumers, and merchants decide to share the proportion.
    In order to attract consumers, most merchants choose to pay the most, which squeezes profit margins
    .
    In addition to delivery fees, merchants also need to pay commissions to the platform in proportion to their sales
    .
    A restaurant owner in Seoul calculated an account.
    The starting price of his take-out delivery is about RMB 64.
    In addition to the various fees for the platform, the actual sales are only 70%, and the fixed costs are deducted, and the final profit is less than 70%.
    About RMB 5
    .
     
      In order to protect basic profits, many merchants have set up a tiered delivery fee model in which the more meals you order, the lower the delivery fee, but this makes consumers who order small meals miserable
    .
    Because sometimes the delivery fee for ordering a meal can exceed the starting fare of a taxi in Seoul—about 20 yuan, or even half of the meal cost
    .
    Nowadays, more and more Koreans choose to go directly to the restaurant to pack, which not only saves the delivery fee, but also avoids food waste caused by over-ordering
    .
     
      Data show that the size of South Korea's food delivery market more than doubled last year than it was before the epidemic
    .
    With the prolonged outbreak of the epidemic, takeout has become an important sales channel for catering businesses, and in the face of rising service fees on takeaway platforms, large chain catering companies such as Korean fried chicken and pizza have begun to try to use various discounts to attract consumers to the store to pick up or use them.
    Their own food ordering platform, but for individual restaurant owners, they can only maintain profits by raising the price of dishes, which once again increases the burden on consumers
    .
      Amid the epidemic , fewer people eat out, which has boosted the development of the food delivery industry
    .
    Controversy over takeaway delivery fees has been ongoing in South Korea
    .
    A few days ago, several major food delivery platforms raised their delivery fees one after another, causing dissatisfaction among merchants and consumers
    .
    Epidemic consumers
     
      The reporter came to the rider dispatch center, the largest food delivery platform in South Korea, located in Gangnam District, Seoul
    .
    Recently, including this company, South Korea's major food delivery platforms have raised the basic delivery fee by up to 1,100 won, and the average delivery fee per order has reached about RMB 32, which is twice the level in 2020
    .
    Nowadays, the food delivery market is booming, and the supply of riders is in short supply.
    All platforms can only carry out a "battle for people" through high commissions, and labor costs continue to increase.
    Therefore, the increase in delivery fees is also regarded by the industry as an inevitable result
    .
     
      However, the catering businessmen are suffering
    .
    The delivery fees of Korean food delivery platforms are shared by merchants and consumers, and merchants decide to share the proportion.
    In order to attract consumers, most merchants choose to pay the most, which squeezes profit margins
    .
    In addition to delivery fees, merchants also need to pay commissions to the platform in proportion to their sales
    .
    A restaurant owner in Seoul calculated an account.
    The starting price of his take-out delivery is about RMB 64.
    In addition to the various fees for the platform, the actual sales are only 70%, and the fixed costs are deducted, and the final profit is less than 70%.
    About RMB 5
    .
     
      In order to protect basic profits, many merchants have set up a tiered delivery fee model in which the more meals you order, the lower the delivery fee, but this makes consumers who order small meals miserable
    .
    Because sometimes the delivery fee for ordering a meal can exceed the starting fare of a taxi in Seoul—about 20 yuan, or even half of the meal cost
    .
    Nowadays, more and more Koreans choose to go directly to the restaurant to pack, which not only saves the delivery fee, but also avoids food waste caused by over-ordering
    .
     
      Data show that the size of South Korea's food delivery market more than doubled last year than it was before the epidemic
    .
    With the prolonged outbreak of the epidemic, takeout has become an important sales channel for catering businesses, and in the face of rising service fees on takeaway platforms, large chain catering companies such as Korean fried chicken and pizza have begun to try to use various discounts to attract consumers to the store to pick up or use them.
    Their own food ordering platform, but for individual restaurant owners, they can only maintain profits by raising the price of dishes, which once again increases the burden on consumers
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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