Coupang Eats to implement new rider management policy

A delivery worker zips by on a scooter in Seoul on Nov. 4, 2020. / Korea times file

By Kim Jae-heun

The country's largest online retailer Coupang has provided new protective measures for drivers of its food delivery service Coupang Eats.

Up until now, responsibility for accidents or problems that occurred while making deliveries fell squarely to the delivery riders.

But Coupang Eats became the first player in the local market to share the burden and help riders that become embroiled in civil or criminal cases in the course of carrying out their work. Coupang will also cover payments to riders if either a customer or restaurant owner cancels an order in the middle of delivery.

The new policy is likely to increase the popularity of Coupang Eats over its competitors. Other players like Woowa Brothers' Baedal Minjok and Delivery Hero's Yogiyo still place most of the burden on their riders when accidents and cancellations occurs. This is possible because delivery people are hired as temporary workers and as such are not automatically covered under occupational health and safety insurance that is mandatory for full-time workers.

Delivery drivers do, however, have the freedom to switch to different companies offering better conditions.

With the COVID-19 pandemic prolonging, demand for food delivery services has soared along with the value of riders in the market. This left companies no option but to pay their riders better if they hope to keep them.

Coupang's new policy could become a new employment standard for delivery workers.

A union of delivery drivers at Woowa Brothers and Delivery Hero has been lobbying the companies to improve the work environment and offer legal protections for workers.

Delivery service companies have not been allocating duties reasonably and fairly among their workers. Also, they did not give delivery persons clear information on why different jobs were given to certain workers based on career, working area and the class of vehicle they use.

The companies blamed the algorithms their systems employ.

The firms signed a memorandum of understanding with the union last October to recognize delivery drivers as employees by law.

The company promised to establish a new consultative body within three months to maintain and develop all the items of the agreement.

Woowa Brothers CEO Kim Beom-joon also promised to adopt practical policies reflecting requests and suggestions from delivery drivers to help them do their jobs safely.