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※ This video was produced in 2020 and may differ from the current situation. ■ Business Owners Say the More Orders Increase, the More Difficult It Is to Do Business! The COVID-19 crisis shows no signs of slowing down and is even raising concerns about a second wave. However, even amidst the fear of a global economic depression and the loss of precious lives, the food delivery app market is one sector that continues to skyrocket day after day. While usage is surging due to the convenience of use and the normalization of contactless consumption, restaurant owners are actually complaining of their struggles. From a chicken shop owner facing the sale of their store despite earning 30 million won in monthly revenue, to a pizza shop owner who worked sixteen hours a day but took home not a single penny... The suffering of self-employed business owners grows as order volume increases. How on earth is this happening? ■ Baemin's Strategy - Fight Among Yourselves! On April 1st, Baedal Minjok, the number one delivery app in Korea, unilaterally revamped its commission system. They changed the system from a fixed-rate basis, where a set monthly fee is paid, to a percentage-based system where 5.8% of total sales is charged. However, facing fierce backlash from franchisees and public opinion, they reverted to the original commission structure within ten days. So, has the problem been resolved now? Franchisees unanimously shake their heads. The previous commission system involved "Ultra Call," also known as "planting flags," where 88,000 won was paid per flag. The problem was that it allowed for an infinite number of flags to be planted by creating virtual addresses in locations where no store actually exists. That is not all. By requiring both customers and stores to use "safe numbers" assigned by Baedal Minjok, they are thoroughly blocking direct connections between consumers and store owners. Ultimately, as Baedal Minjok possesses all the information alone, regular customers for the stores are disappearing, while only Baedal Minjok's regulars are increasing. ■ Who Built This Giant Dinosaur Starting as a young startup 10 years ago, Baedal Minjok has been growing its subscriber base by promoting a commission-free strategy, claiming to replace paper flyers. Over time, the number of users of Baedal Minjok increased exponentially, and soon commission fees were charged and raised. Last December, Baedal Minjok was acquired for 4.8 trillion won by Delivery Hero, the German operator of Yogiyo and Baedal Tong, which hold the second and third positions in the delivery app market. As a result, a single operator now dominates 98% of the entire delivery app market. Store owners are trembling in fear in a situation where they cannot conduct business without using delivery apps. ■ Public Apps: An Alternative for Coexistence The recent controversy over Baedal Minjok's commission fees drew attention to the monopolies and oligopolies of online platforms. As a countermeasure, local governments rushed to declare their intention to develop "public apps," and the one currently showing the best results is Gunsan's public app, Baedal-ui Myeongsu. Gunsan City collaborated with the Korea Mint Corporation to establish a system that allows payments using local currency on mobile devices, and the delivery app usage fee that store owners must pay is 0 won. From the consumer's perspective, it contributes to revitalizing the local community, and from the store owners' perspective, there is absolutely no burden of commission fees, so the number of subscribers to Baedal-ui Myeongsu is growing rapidly. However, there are also concerns regarding public apps. Questions arise as to whether they can truly compete with private delivery apps armed with massive capital, and whether they are intervening too excessively in the market within a capitalist system. We examine the potential of public apps as a solution for mutual growth between platforms and store owners. ※ This video is [Sisa Jikgyeok - The Two Faces of Delivery Apps: Who Raised This Dinosaur?] aired on July 10, 2020. #DeliveryApp #SmallBusinessOwners #SelfEmployed This is the official KBS Documentary channel. We will deliver documentaries that resonate with the world. Copyright ⓒ KBS. All rights reserved. Unauthorized reproduction, redistribution, and use (including AI learning) are prohibited. 📝 [email protected] 📞 02-781-1000 ✔KBS Documentary | KBS Official YouTube Channel Copyright ⓒ KBS. All rights reserved. Unauthorized reproduction, redistribution, and use (including AI training) are prohibited. 📝 [email protected] 📞 +82-2-781-1000 🏢 Seoul, Republic of Korea (South Korea) ∙The current situation and content may differ slightly depending on the time of broadcast. ∙Slanderous or malicious comments may be deleted by the administrator to protect the participants.

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