Baemin to waive fees on delivery-tip discounts, saving 110 billion won a year

[Financial News] Merchants on Baemin will pay lower fees on delivery-tip discounts they offer customers. By extending commission deductions—which previously applied only to food-price discounts—to delivery-tip discounts, annual savings for merchants are expected to reach 110 billion won, including existing deductions.
According to industry sources on the 12th, Woowa Brothers, Baemin’s operator, plans to revise the terms of service for Baemin Delivery to reflect these changes.
Under the revised terms, discounts borne by merchants will be excluded from the calculation of brokerage commissions and payment settlement fees, regardless of the type of discount. For example, if a merchant offers a 3,000-won discount on a 25,000-won order, fees will be charged only on 22,000 won, whether the discount is on the food price or the delivery tip.
According to Baemin, applying a 3,000-won discount to 30 delivery orders a day would save merchants at least 290,000 won a month and about 3.5 million won a year compared with platforms that calculate fees based on the pre-discount amount. This estimate assumes the same discount amounts and sales.
Baemin has already waived fees on food-price discounts. Since May last year, it has also excluded from fee calculations the amounts franchise owners pay toward discount coupons issued by franchise headquarters. The latest revision reflects requests from small-business groups in the food-service industry to apply the same standard to delivery-tip discounts.
Baemin estimates that annual fee savings for all merchants on the platform will total about 110 billion won, including deductions for existing food-price discounts. This is not an estimate calculated separately for the additional deductions on delivery-tip discounts introduced by this measure.
Earlier, in July, Baemin introduced a “combined discount” that allows merchants to offer discounts on both food prices and delivery tips. According to Baemin, participating stores saw their average monthly year-over-year sales increase exceed that of stores using their previous discount methods by at least 200,000 won.
[email protected] Choi Hye-rim Reporter