SEOUL — Baedal Minjok, popularly known as Baemin, has announced an increase in its commission fees for registered restaurants, adjusting the rate to 9.8 percent of food prices starting August 9. The move is designed to align its competitive stance more closely with that of its rivals in the robust South Korean food delivery sector.
According to Yonhap News Agency, the current commission rate of 6.8 percent will be raised to better match the fees imposed by competitors such as Coupang Eats and Yogiyo, which currently charge 12.5 percent and 9.8 percent, respectively. This adjustment is part of Baemin's strategy to maintain a competitive edge in one of the world’s largest food delivery markets, characterized by high smartphone usage and a dense population. Baemin, under the ownership of Woowa Brothers Corp., a subsidiary of Germany's Delivery Hero, commands approximately 60 percent of the market share.
The financial performance of Woowa Brothers has shown significant growth, with a 65 percent increase in operating profit in 2023, amounting to 699.8 billion won ($505 million). This growth is reflective of the high stakes and profitability in the South Korean market, which saw Delivery Hero acquiring Woowa Brothers for $4 billion in December 2019. Despite its dominance, Baemin's strategic pricing adjustment is a move to ensure it does not lose ground to its competitors.