South Korea food delivery giants rev up rider race amid COVID-19 boom
14 October, 2020
In South Korea, a number of the world's biggest food delivery organizations are scrambling to surf around US$4 billion waves of new orders, contracting a large number of new riders in a boom triggered by the scourge of the global economy - the coronavirus pandemic.
Koreans had already developed this appetite for meal deliveries that the united states ranked third on the globe this past year for food order services, according to consultancy Euromonitor. Now, tough social distancing rules and work-from-home policies to counter the pandemic have fuelled explosive growth.
South Korea's food delivery market is expected to jump 40 % this year to around US$15.4 billion from US$11 billion in 2019, Euromonitor data showed, topped only by China and America.
Surging coronavirus-era consumer demand has stoked orders, supported meal pricing, and made the chance of a career as a self-employed rider - earning more each hour than a great many other part-time jobs - an attractive option for most following the pandemic drove Korea's jobless rate to a 10-year high earlier this year.
Contractor jobs like delivery riders could keep growing in number amid the pandemic, predicted Kim Sung-hee, professor of labor studies at Korea University, highlighting the need for government scrutiny of "non-regular work".
"Most of the contractor jobs, including riders, have minimal usage of labor rights," Kim said, "They haven't any access to occupational health insurance and safety insurance no employment back-up."
Giving an answer to the demand surge, Woowa Brothers, the operator of leading food delivery service Baedal Minjok, said it expanded its pool of motorbike delivery riders come to early July by nearly 50 percent from 2,100 previously.
Smaller peer Barogo, which like Woowa Brothers doesn't disclose information on its financial performance - said it really is recruiting 5,000 more, creating openings for a few otherwise unlikely riders.
Among those is Chey Young-ah, a 37-year-old former art teacher in Seongnam, 20km south of Seoul. After the pandemic forced classes at her day job to shut, she saw brisk delivery orders at a fried chicken restaurant where she worked part-time, opted to become rider herself instead in mid-August.
"I feel lucky I found this field at a time when deliveries are booming," she said. "Among the merits of the job is that the entry barrier is low. They don't care whether you're a guy or a woman, you do not need an appointment."
Chey Young-ah, a dispatch rider, rides a motorbike as she makes her way to acquire a meal to provide in Seongnam, South Korea, on Oct 7, 2020. (Photo: REUTERS/Kim Hong-ji)
Chey, who already owned a motorbike, says she earned around 1.8 million won (US$1,565.22) last month while working six to eight hours a day, 7 days per week - already nine times the pay as a skill instructor.
COMPETITIVE PAY
Chey rides for Baedal Minjok and Coupang Eats, operated by SoftBank-backed e-commerce firm Coupang. Like other services, delivery jobs can be found to riders on call via an app, with riders selecting which jobs to take based on distance and payment terms.
Riders say most orders earn them around 3,300 won per delivery - the minimum rate - with the influx of new riders creating greater competition even to secure those deliveries, also to complete the job faster.
"The competition gets fiercer ... Some (riders) violate traffic rules to create one more delivery, putting their safety at risk," said Chey, who herself was already involved in an accident.
Delivery companies are also offering bonuses hoping to secure faster riders. Coupang Eats said riders can earn up to 15,000 won per order, according to order volume and weather conditions.
Data from Rider Union, a labor union representing the new dispatch workers, showed among its members earned just as much as 585,700 won - much like 68 hours of work by minimum wage - about the same day in August.
Numbers like this certainly are a magnet within an otherwise depressed job market.
You Young-Sik, a 28-year-old Seoul internet cafe worker who has seen his pay halved because the coronavirus hit and today fears losing his job, recently signed up for motorbike lessons to get his license.
"As I wanted new openings, I figured delivery business is in vogue these days," said You, who currently makes below 1 million won per month. "Riders' wage looks way greater than what I receive a commission now."
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