Delivery Rates Plummet to 1,300 Won Range... Rider Income in Crisis Due to Introduction of 'Jet Cluster'

As delivery rates in the domestic delivery market fall sharply, concerns are growing regarding the threat to riders' livelihoods and the degradation of delivery quality. With recent cases showing delivery rates dropping to the 1,300 won range per delivery, the impact of platforms' cost-cutting policies on the entire market is drawing attention.

Short-distance Delivery Base Rate Decreased by 500 Won... The Influence of 'Jet Cluster'

According to a video from the YouTube channel 'Jayeongeop Diary', the 'Jet Cluster' policy, which was recently introduced primarily centered around Coupang Plus (a delivery organization in the form of an agency), has been identified as the main cause of the decline in delivery rates. Currently, delivery organizations are divided into general riders who perform individual calls through Coupang's 'Tsu Rider' app, and Coupang Plus organizations that operate in the form of agencies. The core of this policy is a structure that lowers the base rate for short-distance deliveries while adding distance surcharges as the distance increases.

As a result of this policy, it has been found that the base rate for short-distance deliveries has decreased by about 500 won compared to before. The video presents cases where actual delivery rates have dropped to levels of 1,340 won or 1,390 won, explaining that in some provincial areas, rates are being formed in the 1,100 to 1,200 won range. It has been confirmed that this low-rate phenomenon is appearing not only in some provincial areas but also in Gyeonggi Province regions such as Suwon and Ansan.

The video pointed out the unrealistic nature of these rates by citing the physical characteristics of the delivery process. Beyond the simple process of delivering from a restaurant to a customer, delivery includes three processes: the rider must move to the restaurant to pick up the food, wait after arrival until the food is cooked, and then move to the customer's location to complete the delivery. In particular, it was noted as a problem that if the cooking wait time is long, one delivery can take 15 to 20 minutes.

Delivery Income Below Minimum Wage... Concerns over 'Rate Competition' Between Platforms

The drop in delivery rates directly leads to a decrease in the actual income of riders. The video pointed out that considering the time required for the delivery process, a rate in the 1,300 won range per delivery is highly unprofitable. If we assume that one 1,300 won delivery takes 15 minutes, the hourly income would be only about 5,200 won. This is significantly lower than the current minimum hourly wage in South Korea, which is 10,320 won, and even the 10,700 won standard for next year. Of course, in reality, it cannot be concluded as the rider's hourly income because multiple deliveries can be bundled or promotions and additional amounts exist, but the explanation is that the fact that such rates actually exist shows the seriousness of the market.

Riders are in a situation where they must directly bear motorcycle fuel costs, insurance premiums, repair costs, and depreciation costs. The video expressed concern that this low-rate structure could lead to competition between platforms. From the platform's perspective, it is more profitable to give calls to riders who can perform them at 1,300–1,400 won rather than riders to whom they must pay a base rate of 2,500 won. If the volume of low-rate deliveries continues to increase, there is a possibility that the short-distance calls preferred by many riders will be concentrated among 'Jet Cluster' riders, thereby reducing the volume for general riders.

Furthermore, the current delivery market is split between Baemin and Coupang, leaving riders with narrow choices. The analysis suggests that if a low-rate structure is established and deliveries are performed normally on one platform, the other platform may also consider similar methods to reduce costs. The video emphasized that the speed at which delivery rates have plummeted—starting from the 3,000 won range in the past, passing through 2,500 won and 2,200 won, and currently reaching the 1,400 won range—is very fast.

Self-employed Burden Remains the Same, Rider Income Plummets... Questioning the Destination of the 'Difference'

The drop in delivery rates raises questions not only for riders but also for the self-employed. According to the video, self-employed individuals currently pay delivery fees of approximately 3,400 won per delivery to platforms, based on the top 35% in Seoul. However, if the actual delivery fee passed on to riders plummets to the 1,300–1,400 won range, questions are raised regarding where that difference is heading. This is because, from the perspective of the self-employed, a strange phenomenon is occurring where only the riders' income is decreasing even though the burden of delivery-related costs is continuously increasing.

From the perspective of the self-employed, if dispatching is delayed during peak hours due to the drop in rates, they suffer damages such as degradation of food quality and consumer complaints. This is because the food condition inevitably worsens as the delivery is delayed. The video reported that skepticism is spreading even among riders, with many asking, "Should I have to deliver for this much money?" It is pointed out that although delivery is labor where the risk of accidents always exists, the price of labor is being set excessively low.

The person appearing in the video emphasized, "A sudden drop in rates causes living difficulties for those who make a living through delivery," and stressed that even if the pursuit of corporate profit is a priority, a minimum base rate must be guaranteed for livelihood-dependent riders. Mentioning that the current low-rate structure has reached a level that is difficult for individuals to respond to, the speaker suggested an unstable situation where it is unknown how much further the rates might fall in the future.