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Yogiyo, one of South Korea’s leading food delivery platforms, in a strategic move to attract more vendors, has announced a significant reduction in its delivery commission fee. Effective from August, the commission will drop from 12.5 per cent to 9.7 percent, positioning Yogiyo as the platform with the lowest commission rate among its competitors.
This reduction puts Yogiyo ahead of Baedal Minjok and Coupang Eats, which charge 9.8 percent, respectively. By undercutting its main rivals, Yogiyo aims to expand its market share in the fiercely competitive food delivery industry.
“Our decision to lower the commission fee reflects our commitment to supporting our vendor partners, especially in these challenging economic times,” said a Yogiyo spokesperson. The move comes amid increasing pressure on food delivery platforms to lower their fees, as restaurants and small food businesses struggle with rising costs and decreased margins. By offering the most competitive rate in the market, Yogiyo hopes to become the preferred choice for vendors looking to maximize their earnings.
Industry analysts view this development as a potential game-changer. “Yogiyo’s decision to lower its commission fee to 9.7 percent is likely to intensify competition among delivery platforms,” said Lee Min-jung, a market analyst. “Vendors will benefit from reduced costs, but it remains to be seen how the platforms will adjust their business models to maintain profitability.”
The reduced commission fee is expected to attract a significant number of new vendors to Yogiyo, enhancing the platform’s restaurant portfolio and variety for consumers. Additionally, this move might prompt other delivery platforms to reevaluate their fee structures to remain competitive. Yogiyo’s bold move signals a shift towards more vendor-friendly practices, potentially reshaping the dynamics of the industry.