What changed in Coupang Eats’ rider delivery fee system?

Coupang Eats lowered the standard commission from 3,100 won to 2,500 won per delivery. It introduced an additional payment of up to 10,000 won for long-distance trips, creating a maximum rider fee of 16,000 won.

Why are Coupang Eats riders considering a strike?

Riders oppose the lower standard commission because workers who mainly handle short-distance orders could earn substantially less. Rider Union is collecting signatures, while some riders warned that accepting the policy could encourage Baedal Minjok and Yogiyo to reduce rider pay as well.

How could a Coupang Eats rider strike affect customers?

The article said a strike was not expected to cause major disruption because Coupang Eats serves 17.1 percent of delivery-service customers. If the platform lacked enough riders, customers could use Baedal Minjok, Yogiyo or other delivery services instead.

Coupang Eats' new delivery fee policy hits riders

Listen

Summary

Coupang Eats reduced its standard rider commission fee in Seoul on Tuesday, prompting delivery workers to consider a strike. The new system cuts the standard fee by 600 won from 3,100 won but adds up to 10,000 won for long-distance deliveries, capping the fee at 16,000 won. Riders making 10 short-distance deliveries daily could lose about 200,000 won per month.

Key Facts

Rider Union began collecting signatures on Monday for a strike opposing Coupang Eats’ new payment policy.
A Naver internet community post warned that the revised system could reduce a delivery worker’s monthly earnings by 200,000 won to 1 million won.
Coupang Eats said it could not confirm how many riders might strike because its riders are casual employees and are known to be working only when they accept orders.
Mobile Index reported that Coupang Eats is used by 17.1 percent of delivery-service customers, compared with 81.76 percent for Baedal Minjok and 36.89 percent for Yogiyo.

By Kim Jae-heun

Published Mar 3, 2021 9:08 am KST
Updated Mar 3, 2021 5:13 pm KST

A Coupang Eats rider delivers food on a bicycle in Seoul, in this Jan. 31 handout photo. Courtesy of Coupang

By Kim Jae-heun

Local food delivery platform Coupang Eats has met resistance from the union that represents its riders after reducing its commission fee for workers of the delivery service.

Coupang Eats adopted a new fee system on Tuesday that pays delivery workers 600 won less than the previous 3,100 won of its standard commission fee. Instead, the food delivery player decided to pay an additional 10,000 won to those who travel long distances for a given delivery. This sets a maximum 16,000 won delivery fee for riders.

However, for delivery workers who only want to travel short distances, this means a major reduction in their pay. Those who deliver 10 orders per day ― supposing that they only take orders traveling short distances ― will receive about 200,000 won less in earnings per month.

A group of delivery workers on a Naver internet community proposed going on strike for a day.

“If we accept Coupang's new policy, it will lead to a reduction in our pay with other food delivery services like Baedal Minjok and Yogiyo as well,” one of the riders wrote online anonymously. “Also, Coupang's new system can pay you between 200,000 won to 1 million won less per month.”

It has not been confirmed how many delivery workers would join this proposed strike.

On Monday the country's biggest delivery worker union, known as “Rider Union,” started collecting signatures from their members to go on strike as an act of resistance against Coupang's new fee system.

“We have to collect signatures from delivery workers to show Coupang how many of us oppose their new payment policy,” a Rider Union official said.

Coupang Eats said it cannot confirm the exact number as their riders are casual employees and it only knows they are working when they start accepting orders.

A possible strike is not expected to cause chaos to the food delivery service as Coupang Eats is used by only 17.1 percent of all delivery service customers. And 81.76 percent of delivery service customers use the country's top food delivery service Baedal Minjok while 36.89 percent use No. 2 player Yogiyo, according to mobile phone market researcher Mobile Index, noting that most customers use multiple services.

In the event that Coupang Eats cannot provide delivery service due to lack of delivery workers, customers will simply order food with other delivery services.

Explore More