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,…
Three bills aimed at limiting delivery platform fees for food businesses are pending approval at South Korea's National Assembly. Proposed by different legislators from the ruling Democratic Party and the main opposition People Power Party, the bills seek to reduce financial burdens on small businesses, especially those with limited customer bases.
However, industry experts warn the proposals could inadvertently shift costs to other entities within the ecosystem, including delivery riders and consumers. The bills propose varying limits on the combination of brokerage, payment processing, and advertising fees, with one suggesting a maximum of 15 percent of an order's value.
Another bill would impose a separate cap and minimum floor on delivery fees. Advocates hope the measures will help alleviate financial strain on food businesses, but critics question whether the proposed changes would truly address the issue or simply redistribute costs among other stakeholders.
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
