You’re lowering the delivery fee? Deliveryman who took a group action… Coupangitsu “It’s not easy to chase after the shipmin”

Input 2021.03.02 15:00

Delivery workers related to the reorganization of the delivery fee policy implemented by Coupang Itz took a group action. When Coupang Itz, the third largest in the domestic food delivery application (app) industry, announced that it would reduce the basic commission paid to delivery drivers by 600 won from 3100 won to 2500 won starting on the 2nd, some delivery workers refused to deliver Coupangitz.

Rider Union, a labor union of delivery riders, predicted a collective action, saying, “If the delivery fee is reduced by 600 won per case, the rider who delivers an average of 10 cases per day will lose about 200,000 won per month.”

In a phone call with Chosun Biz, the head of the Rider Union planning team Gyo-Hyun Koo said, “The 450 members of Rider Union have decided to refuse delivery of Coupang Itz for two days and one day.” “I can’t even earn the minimum wage.” They are encouraging collective action to prevent Coupang’s cuts in delivery charges from spreading to other companies in a domino-style way.

However, it is unclear how much delivery riders who have strong personality as individual businesses (special employees) who earn as much as they make delivery will participate in group actions.

Coupang’s position is that this price policy reform focuses on expanding the delivery cost category to a maximum of 16,000 won, rather than reducing delivery charges. An official from Coupang-Itsu said, “There are many riders who avoid long-distance delivery, and we have strengthened the compensation for long-distance delivery in the direction of paying an additional surcharge of 10,000 won for each distance.

The industry sees Coupang’s increase in delivery rates as part of its strategy change. Coupang Itz, a latecomer in the delivery app market, puts out the’fast delivery service’ as its strength, which is the differentiating factor of Coupang, which can be called the parent company.

Coupang Itz targeted the market with the concept of’one food, one delivery’. Because of this, customers were able to receive food in a faster time than Yogiyo, the Nation of Delivery, which usually delivers food through five restaurants. Ordering food at Baemin and Yogiyo usually takes about an hour, but at Coupang Itz, the food was delivered within 20 minutes. To this end, Coupang Itz used a strategy for securing riders that paid up to 20,000 won for delivery, including promotions.

However, it is explained that Coupang changed its strategy to a low-cost offensive as the market share expansion was sluggish. This is because consumers consider the price (delivery fee + food price) the most when choosing a delivery app. It changed the route to price competition rather than speed competition.

Seo Yong-gu, a professor of business administration at Sookmyung Women’s University, said, “After listing on the US stock market, Coupang should become a different company than before.” It is time for a crisis response strategy.”

While Coupang Itz started to cut the delivery fee, Bae Min increased the delivery cost of’B Mart’, a daily necessities shopping service. Bae Min’s side raised the existing B Mart delivery basic fee from 1,500 won to 3,000 won, and the minimum order amount from 5,000 won to 10,000 won. The free shipping benefit was provided to customers who ordered more than 20,000 won, but raised it to customers who ordered more than 30,000 won.

An official in the convenience store industry said, “When the B-Mart service was launched, the barrier to entry was lowered by setting the delivery fee low so that many consumers can use it. It is interpreted as” he said.