[Consumption-value-coverage] Baedalminjok is extending the option for consumption value through delivery service
[Consumption-value-coverage] Baedalminjok is extending the option for consumption value through delivery service
  • HueSoung, Jun Reporter / Yohan, Bok Reporter
  • 승인 2023.03.23 14:02
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Photo: Baedalminjok is presenting a new delivery service that'll bring down delivery costs for business owners and consumers. /photo: Consumerwide DB)

[Consumerwide_ HueSoung, Jun Reporter / Yohan, Bok Reporter]  Baedalminjok is leading the consumption-value. They are presenting a new service 'Al-tteul-bae-dal'(inexpensive delivery) that'll bring down costs for business owners and consumers. This may become a new standard for consumption value choice. 

Recently, with the release of a distancing policy, food delivery orders are decreasing considerably. Followed by the National Statistical Office, food service accompanying delivery service has dropped by 8.3% by recording a 2 trillion 2,295 won compared to a year ago.

Starting from the decrease of food service turnover down to 5.3%, there has been a constant decrease till December for 6 months. The turnover of online deliveryfood had been increasing rapidly every year by recording 2.7 trillion won in 2017, 5.3 trillion won in 2018, 9.7 trillion won in 2019, 17.3 trillion won in  2020, and 25.7 trillion won in 2021. However, growth has held steady since last year. The reason that the growth rate of delivery applications on a roll being stuck is probably the expensive delivery cost.

Recently, followed by delivery app user state research which has been published by Korea consumer agency, among 1950 delivery app user consumers 50.1%, users are considering the delivery cost to be expensive. This means that 1 user between 2 users of the delivery app.

From the 977 consumers who consider delivery costs to be expensive, 58.1% thought, 'The delivery app needs to defray delivery expenses.' while 35.2%(344) thought, 'default delivery cost needs to be brought down and rather set cost depending on the situation.'

The food delivery business owner also showed similar thoughts from the app users. 75.9% of the small business owners recognized the delivery service as being expensive. Among them, 86.5% see that the delivery app needs to bear more, while 66.8% see the default delivery cost is falling and, instead, differentiation in delivery costs is necessary.

In response to this, Baemin is suggesting a new consumption value standard, which hopefully stops turning away customers and lessens the delivery expenses of small business owners and consumers.

In time, Baemin delivery provides two choices; the food business owner is delivering on his own (or using another delivery service) or Baemin is delivering (Baemin1). For the entire Seoul area, a single order delivery service is offered. This service is a fast delivery by exclusively delivering one customer.

Nevertheless, the delivery cost is slightly expensive because of premium service. The business owners bear 6000 won and it's shared with the customers. The most common ways are for business owners and consumers to pay 1:1. Some shift whole delivery fees to the consumers. Consumers have to pay a minimum of 3000 won for one order.

On the 20th, followed by Baemin, the 'Al-tteul-bae-dal' (inexpensive delivery) where they are newly presenting a bundle delivery not single order delivery. According to the delivery route, the orders go together, which made to lessen the delivery cost of the food restaurants and consumers. With the Altteulbaedal, the business owner pays approx 2,500~3,300 won(VAT not included) for delivery. The consumers pay approx. 2000 won, so it lessens the cost burden.

As a result, the choice for the consumption value gets widened. Bundle delivery is not only good for dropping the delivery fees, but also in the aspect of environmental protection. With the single order delivery, because the driver delivers without stopping at other places, this results in wasting energy(petrol) on driving compared to bundle delivery.

In particular, a motorbike used for delivery takes lamp oil. This can be a problem for the environment. Unless the electric motorbike is distributed, the bundle delivery is better than the single order delivery considering the environment. By choosing the bundle delivery, consumers can participate in environmental protection while lessening the delivery cost. Although food delivery can be late.

On the other hand, if consumers want a delivery with hot and fresh food right after the cooking, even if it costs more, they may choose the single order delivery. Both services are offered by Baemin, so it is easy to follow after the rider's route and estimated arrival time. In addition, Baemin takes care of the customer claims relating to the delivery.

However, providing options for single order delivery and the bundle delivery service is all up to the food business owners. When the business owner chooses, the consumer can choose. Even if the consumer wants a bundled delivery service, if the food business can offer a single delivery service only, the consumer has to use a single delivery service.

Also, Altteulbaedal is not offered in the Seoul area when they launch in the middle of next month. Altteulbaedal is offered as a test-bed starting from Daegu, Inchon, Gyounggi. Baemin is planning on expanding the service area gradually. However, the time for the national scale, including Seoul, is undetermined.

A Baemin related person said during an interview with Consumerwide, "As the delivery app industry is constantly growing, the consumers and the business owners are starting to have diverse needs. In order to fulfill these needs, we've been continuously developing our service. Altteulbaedal is one part of our research. In terms of the delivery cost, this may satisfy the business owner, consumer, and the rider."


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