Intensifying competition for delivery apps and franchise franchisees with no business area restrictions

【Anchorment】
With the rapid increase in food delivery due to Corona 19, the delivery app market is booming.

However, as competition between franchise franchisees intensifies over delivery areas, side effects are also continuing.

Reporter Chae Hae-won reports.

【 reporter 】
Branches A and B, which are members of the same chicken franchise.

Branch B is attracting customers from the delivery app to the branch A area beyond its own sales area.

This is because there is no legal standard to protect the merchant business area online such as delivery apps.

Some franchisees are expanding their delivery area with advertisements that repeatedly expose their name by registering in multiple regions regardless of their address.

【Spot sound 】Kim Ji-ye / Director of Gyeonggi Province
“Because I believe that other adjacent store owners are invading their business areas, they also have to invade the business areas of other store owners to some extent, but they believe that they will be able to secure the original sales, so there was a tendency to inevitably expand the advertising area. “

Competition among franchisees is becoming more and more intense, and consumer inconveniences such as long delivery times and expensive delivery charges are inevitable.

Gyeonggi-do surveyed 5,700 chicken and pizza merchants exposed to three delivery apps in 10 cities and counties to check the actual conditions of online delivery business areas.

The delivery distance of some merchants is up to 12km, and the delivery area is confirmed to be 3.7km, which is 2.5 times the actual average delivery distance.

The percentage of other branches of the same brand exposed together exceeded 40%, with 18 affiliated stores in one region being exposed at once.

【Spot sound 】Kim Ji-ye / Director of the Gyeonggi-do Industrial Complex
“There is hardly any head office that feels the need to solve the problem, and the delivery app company is on the lookout because it can earn more advertising revenue without an online sales area.”

Gyeonggi-do plans to hold a discussion meeting to improve the system for online business areas in next month.

Accordingly, the delivery app side announced that it has established a plan to negotiate with the franchisees and coordinate with the franchise headquarters in case of disputes in the online delivery area.

This is TBS Chae Hae-won.

#Delivery app #Placing a flag #Affiliates #Delivery conflict #Gyeonggi-do #Online_Sales area #People of delivery

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