Many people have been using delivery platforms while spending lots of time indoors due to COVID-19. However, it couldn't be avoided that consumer prices would rise amidst the global situation of the COVID-19 pandemic and war between Ukraine and Russia etc. This situation has penetrated the everyday life of people all over the world. Among them, it is a situation in which people feel lots of pressure. Because delivery platforms' prices have increased. Recently, how is delivery platforms' situation regarding increasing prices like fatal distress?
In the early days of the delivery platforms, they received a small commission at the expense of huge losses, to increase the market share. At the beginning of this year, Baemin(People of delivery), Coupangeats and Yogiyo, reorganized the delivery commission system after taking control of the food delivery application market, which they have been dominating with a 97% market share. Previously, each delivery case received a commission of 1,000won and a delivery fee of 5,000won. However, since March, the delivery commission was raised to 6,000 won and the fee was raised to 27%. This is why 70% of self-employed people are responding, by raising delivery costs or food prices from customers.
Furthermore, in terms of a restaurant owner, it is difficult to endure increased delivery commissions because labor and material costs also significantly rose. In the situation where food ingredients and dining out prices rose; delivery costs and food prices of delivery platform services being frequently used rose further. Consumers think that it makes current matters worse and have felt a heavy financial burden. The recognition of delivery platforms is not good for them. On the other hand, in the position of delivery platforms, they should collect costs of growing the market at the expense of huge deficits by raising commissions as mentioned above. However, consumers have felt encumbered by delivery costs and food prices, due to the side effects of extreme inflation. Therefore, they are reducing the delivery applications' use and the delivery platforms are experiencing a loss in profit. No one can feel content about this situation. Some netizens claim that these platforms are the cause of instigating serious inflation, in addition to the current inflation of the market. They claim: 'inflation by platforms'
This is no exception to foreign countries. For example, 'Amazon', the largest online shopping mall in the United States, raised the subscription fee for their, ”Prime Membership,” which offers discounts on shipping fees and video streaming, by 17$ from $119(about 159,000won) per year to $139(about 185,700won) in February. Europe gave a notice that subscription fees will be raised 31% on average starting in September.
Not only in Korea, but all over the world, both individuals and platforms can't avoid the rise of inflation. The taxi and shopping markets in Korea are also in the same dire situation. Consumers have lots of negative responses due to the raised delivery commissions. Inflation seems to continue because it is a social and international problem. Therefore, it will be important to reflect on consumption habits and accustom ourselves to new saving ones that suit each of us individually. Also, a nationally reasonable compromise regarding a platform commission policy in response to the negative public opinion seems to be needed, not only for the commission but for confused self-employed people and restaurant owners, too. Inflation has inpacted us all.
By Park Seong-eun,cub-reporter firstname.lastname@example.org
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