Delivery fee cap risks shifting costs to riders, consumers
Pending bills at the National Assembly proposing a cap on delivery platform fees charged to food businesses to reduce their financial burdens, particularly small businesses with limited customer bases, are raising questions about the effectiveness of the proposed changes. Industry experts have examined the current ecosystem, which consists of food-ordering platforms, participating businesses,…
Proposed legislation at South Korea's National Assembly aims to set a cap on fees that delivery platforms charge food businesses, with the intention of easing their financial strain. However, industry specialists have pointed out that this move may inadvertently shift costs onto other stakeholders in the ecosystem, including delivery riders and consumers.
The bills, currently under consideration, vary in their specific details but all seek to regulate the total cost of delivery by capping combined fees at 15 percent of an order's value. Representative Lee Kang-ill, a member of the ruling Democratic Party of Korea, introduced a bill that also includes separate caps and a minimum fee for delivery charges.
Another bill, sponsored by opposition party legislator Park Jeong-hun, focuses on delivery fees without specifying the overall fee structure. Critics argue that while the cap could alleviate pressure on businesses with limited customer bases, it could ultimately lead to higher costs for riders and consumers who bear the financial burden of the new regulations.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Delivery fee cap risks shifting costs to riders, consumers koreatimes.co.kr
