[비즈한국] Feeling the pressure from Coupang Eats' aggressive pursuit, Baemin (Baedal Minjok) is set to roll out a major app overhaul starting next month. While Baemin claims the redesign is a decision made for the benefit of both consumers and store owners, dissatisfaction is mounting among the self-employed.
“I spent tens of millions of won to build up ‘bookmarks’ for nothing,” some business owners complain
Woowa Brothers, the operator of Baedal Minjok, is embarking on a service overhaul. The company plans to merge the current two-tab system—‘Food Delivery’ and ‘Shop Delivery’—into a single ‘Food Delivery’ tab. Previously, depending on the delivery method, the same store would appear under ‘Food Delivery’ for Baemin’s own delivery service, or ‘Shop Delivery’ for third-party agency deliveries. Woowa Brothers states that this consolidation aims to enhance customer convenience.
Moving forward, consumers will be able to check and order from options like bundled delivery, single-house delivery, shop delivery, and take-out/visit all on one store detail screen. Woowa Brothers announced that it will apply the integrated app update sequentially by region, starting with Sejong City on March 7.
With the disappearance of the ‘Shop Delivery’ tab, the ‘Ultra Call’ advertising product will also be discontinued. Ultra Call is a flat-rate advertising product costing 88,000 won per month for stores using shop-managed delivery. It was designed so that if an owner placed a ‘flag’ in a desired area, their store would be exposed to customers in that region.
Woowa Brothers explains that ending Ultra Call is part of an effort to reduce the fixed cost burden on owners. A Woowa Brothers representative stated, “There has been criticism that Ultra Call causes a ‘flag-planting’ war that leads to unlimited cutthroat competition. Therefore, many people are actually welcoming the news of the discontinuation.”
On the other hand, voices of discontent are erupting among some self-employed individuals. They argue that while Baemin is packaging this overhaul as a move toward mutual growth with owners, it is actually a ploy to boost Baemin’s profitability. This is because, with the flat-rate Ultra Call disappearing, they are now effectively being forced to use the commission-based ‘Open List’ product. When using shop-managed delivery, if one does not apply for the Open List, the store will not be exposed on the Baemin app. Unlike the flat-rate Ultra Call, the Open List charges a 6.8% commission per order, which is expected to significantly increase the financial burden on owners with high order volumes.
Commissions will also be applied to ‘Other Orders,’ which were previously exempt. Baemin classified orders coming through channels other than ads—such as bookmarks, shopping carts, and order history—as ‘Other Orders’ and did not charge brokerage fees. Many self-employed individuals had been working hard to increase the proportion of these ‘Other Orders’ to boost profitability.
One business owner expressed their frustration: “We didn't have to pay separate commissions when customers ordered through the list of ‘bookmarked’ stores. But now, under the pretext of an app update, Baemin announced that they would apply Open List commissions to all ‘Other Orders’ as well. I’ve spent tens of millions of won just to increase my bookmark count over the years. How can they just render all that effort meaningless in an instant?”
Woowa Brothers stated, “It cannot be viewed simply as an increase in costs for owners due to the app update. Reactions are mixed, as those who utilized Ultra Call effectively may not like it,” adding, “Since it’s impossible to satisfy everyone 100% at once, we changed it in a direction that could benefit the majority of owners and customers.”
Intensifying competition between Coupang Eats and Baemin only adds to the burden on the self-employed
As competition between Baemin and Coupang Eats intensifies in the delivery market, the burden on the self-employed is worsening. One owner lamented, “Ever since Coupang started free delivery last year, its market share has grown immensely. Media outlets say Coupang Eats has a 30–40% share, but what I feel in the field is even higher. These days, 8 out of 10 delivery orders are through Coupang Eats. Because of this, Baemin is getting anxious and releasing measures that squeeze the self-employed to keep Coupang Eats in check. The delivery market is completely collapsing because of the competition between the two.”
Coupang Eats only offers its own delivery service (where Coupang handles everything from order to delivery) and applies a single commission-based advertising product. As Coupang Eats continues its rapid growth, Baemin appears to be gradually following suit. With the app overhaul, they have decided to operate only commission-based ad products and have begun strengthening their own delivery services. Concerns are growing among the self-employed that Baemin might soon move to abolish shop-managed delivery entirely.
A Woowa Brothers representative explained, “The trend is that consumers prefer proprietary delivery services, so the number of users for shop-managed delivery is decreasing in the market. This is a decision to improve inefficient areas,” adding, “However, nothing has been decided regarding the abolition of shop-managed delivery.”
Self-employed business owners emphasize that delivery app companies should consider mutual growth rather than just chasing immediate profits. One owner said, “I’ve been in the chicken business for 20 years, and I’ve never had it as hard as now. It was really tough when the first bird flu outbreak happened, but that was nothing compared to today,” adding, “I work and work, but there’s nothing left, so I wonder if it’s even right to keep the business running. I’m working hard just to fill the pockets of the delivery app companies. At this rate, many self-employed people will go out of business this year. If the self-employed sector collapses, won’t the delivery apps also struggle? That’s why we need mutual growth.”