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, customers who place orders and riders who deliver them. They found that the cap could reduce the burden on businesses using the platforms but shift that cost to other groups in the ecosystem, such as riders and consumers. Three bills proposing different versions of the cap are pending at the National Assembly. One was proposed by Rep. Lee Kang-ill of the ruling Democratic Party of Korea, a member of the National Policy Committee. He proposed capping the combined brokerage fee, payment processing fee and advertising expenses at 15 percent of an order's value, while imposing a separate cap and a minimum floor on delivery fees. Rep. Park Jeong-hun of the main opposition People Power Party (PPP) propo
