The win-win consultative body between the delivery platform and the store company, which aims to come up with a win-win plan such as reducing the delivery brokerage fee rate, failed to reach an agreement even at its 9th meeting on the 30th. The goal of reaching an agreement within October was in vain. The win-win council decided to meet again next month to attempt last-minute negotiations.

The coexistence consultative body of delivery platforms and store companies held its 9th meeting at the Shinhan Bank headquarters in Jung-gu, Seoul on this day and held marathon negotiations for about 8 hours, but differences of opinion were confirmed regarding the reduction of delivery commission rates. Public interest committee members presented a mediation plan to both the four delivery platforms, including Baedal Minjok, Coupang Eats, Yogiyo, and Taengkyoyo, and the store companies, but were unable to reach an agreement. The win-win council decided to meet again on the 4th of next month to discuss delivery brokerage fees in the near future.

Baedal Minjok is not accepting the 5% cap on commission rates requested by stores. Previously, Baemin proposed a plan to apply a brokerage commission rate of 9.8% to companies in the top 60% of sales, and a differential brokerage fee rate of 2 to 6.8% to companies in the bottom 40% of sales. Coupang Eats proposed a plan to lower the brokerage commission rate from 9.8% to 5%, but also suggested that stores pay more delivery fees.

On this day, four organizations, including the Small Business Association, Korea Restaurant Industry Association, National Franchise Owners Association, and National Merchants Association, submitted a single request to differentially apply the brokerage commission rate within 2 to 5% of the total order amount depending on sales. Store companies are opposed to Baemin’s policy of sticking to the highest brokerage commission rate of 9.8%, and see Coupang Eats as a ‘Mr.

The win-win council said, “A consensus has been reached on the direction of the rest of the matters, except for measures to ease the burden on stores, such as commissions.” First, an agreement was reached on the suspension of the 'most favorable treatment' requirement, which required the company to set the most advantageous price and discount for its app. Both Baemin and Coupang Eats will, in principle, discontinue the operating policy for conditions for providing membership benefits that is currently in effect. However, even if there is no intention to stop immediately, they have decided to revise the operating policy for providing conditions for delivery app membership benefits accordingly when the Fair Trade Commission's investigation results are released.

We decided to provide location information of delivery drivers to stores. However, considering the opposing opinions of delivery driver groups, delivery platforms have decided to go through necessary procedures such as changing terms and conditions and consent from delivery drivers, limited to the section from when the delivery driver accepts the order to when it is picked up. In addition, it was decided to indicate store commissions and delivery fees on consumer receipts.

Although the goal of reaching an agreement within October has been missed, the deadline for activities of the win-win council is expected to be extended for the time being. Public interest committee members are considering a plan to announce a ‘recommendation’ if both sides reject the mediation plan. However, the recommendation has a limitation in that it is not enforceable. The Fair Trade Commission has decided to consider pushing for legislation to cap delivery commission rates as ‘Plan B’ if final negotiations fail.

The Democratic Party of Korea's Euljiro Committee has announced that if the two sides fail to reach an agreement, they will initiate legislation to introduce a cap on delivery commission rates and preferential commission rates. Fair Trade Commission Chairman Han Ki-jeong also promised to come up with a win-win plan by the end of this month at the National Assembly's Political Affairs Committee audit on the 21st, saying, "If no agreement is reached, we will also actively review additional measures, such as legislation."

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