Coupang Eats considers tiered commission structure based on restaurant sales

(Coupang Eats)

Coupang Eats is reviewing a proposal to implement a tiered commission structure based on restaurant sales, as calls for reduced delivery fees grow within the industry, industry sources said on Monday.

Under this model, restaurants with lower annual revenue would pay reduced commission rates, while larger establishments would continue to pay more. Restaurants with annual sales below 100 million won ($75,000), for example, would be charged a 2 percent commission, those with sales between 100 million and 300 million won would be charged 3 percent, and restaurants with revenue between 500 million and 1 billion won would face a 5 percent fee. The proposal is currently undergoing internal simulations, and Coupang Eats is expected to submit the plan to the Fair Trade Commission for review.

The push for a tiered commission structure was initially suggested by the Euljiro Committee of the Democratic Party during a private meeting with Coupang Eats. The committee emphasized the growing burden on restaurant owners, particularly as many have been forced to adopt “dual pricing” strategies that charge higher prices for delivery orders compared to in-store purchases.

The proposed tiered commission system is modeled after the preferential commission rates used in the credit card industry, where smaller businesses benefit from lower transaction fees.

If introduced, this tiered commission system could pressure other delivery platforms, including Baemin and Yogiyo, to follow suit.