Seoul, South Korea – Baedalminjok, one of South Korea’s largest food delivery platforms, has announced a significant reduction in its commission fees, aiming to provide relief to small restaurant owners. The new pricing structure, which will be implemented on February 26, is a direct result of agreements made with the government last year.

Under the new "mutual prosperity" pricing scheme, Baemin will categorize restaurants into four tiers based on their sales volume on the platform. Restaurants in the bottom 20% of sales will enjoy the lowest commission rate of 2%, while those in the top 35% will pay a 7.8% commission. Delivery fees will also be tiered, with smaller restaurants paying less.

"We are committed to supporting our restaurant partners, especially those who have been struggling," said a spokesperson for Woowa Brothers, the company that operates Baemin. "This new pricing model is a direct response to the concerns raised by small businesses."

The move comes after months of negotiations between the government, food delivery platforms, and restaurant associations. Small businesses had long complained about the high commission fees charged by platforms like Baemin and Coupang Eats.

While Baemin has been quick to implement the new pricing structure, Coupang Eats has yet to announce its specific plans. Industry analysts expect other food delivery platforms to follow suit in order to remain competitive.

The reduction in commission fees and delivery charges is expected to provide a much-needed boost to small restaurants, which have been struggling to recover from the economic impact of the COVID-19 pandemic. However, some analysts have raised concerns that the new pricing model could lead to a decrease in the quality of service, as platforms may be forced to cut costs in other areas.

[Copyright (c) Global Economic Times. All Rights Reserved.]