Baemin-Coupang Eats, Delivery Cost Conflict Intensifies... Considering Legal Action Over ‘Dual Pricing System’

Baedal Minjok and Coupang Eats app icons

Baedal Minjok (hereinafter referred to as Baemin) and Coupang Eats are currently clashing head-on over delivery costs.

The conflict between the two began as a 'dual pricing system,' where delivery menu prices are higher than in-store prices, started to spread.

Coupang Eats announced its position regarding delivery costs the previous day, stating, "The cause of the dual pricing system lies in a specific delivery company shifting free delivery costs to restaurant owners while increasing commission fees." They emphasized, "Coupang Eats fully covers the delivery costs for customers and does not pass any burden onto restaurant owners."

In response to this claim, Baemin distributed a rebuttal statement, asserting that Coupang Eats is distorting the facts by confusing Baemin Delivery with Store Delivery.

Baemin explained, "The Baemin Delivery service, like its competitors, has the company covering customer delivery tips, and the intermediary service fee for restaurant owners is 9.8%, with a restaurant owner delivery cost of 2,900 KRW in Seoul, the same as our competitors."

Furthermore, Baemin added that in the case of Store Delivery, restaurant owners can directly set the customer delivery tip, providing them with more options.

Baemin expressed regret over Coupang Eats' statement for "misleading public opinion with distorted information" and warned that "legal action will be actively considered if such claims continue."

This conflict reveals the conflicting interests between the restaurant industry and delivery platforms regarding delivery fees and commission structures, and there is a possibility that the intense competition between the industry's first and second players could lead to legal disputes.

Meanwhile, Coupang Eats has aggressively expanded its market share, emerging as the second-largest player in the delivery market.

In response, Baemin is employing new strategies, such as launching the 'Baemin Club' subscription service to support some of the delivery costs for restaurant owners.