The Impact of Free Delivery and Competition Among Delivery Services on Consumers

 In recent years, the growth of delivery services has led to the emergence of various delivery platforms. Particularly during the COVID-19 pandemic, as people became reluctant to go out, the demand for delivery services surged. As a result, many delivery companies have introduced various discounts and free delivery services to attract customers. However, it is necessary to question whether this competition truly benefits us as consumers.



  • 1.The Allure of Free Delivery Free delivery services are very attractive to consumers. For example, delivery platforms such as "Baedal Minjok," "Yogiyo," and "Coupang Eats" offer free delivery benefits to new subscribers or first-time customers and implement policies that provide free delivery for purchases over a certain amount. This approach plays a significant role in attracting new customers and encouraging repeat orders from existing customers.

  • 2.The Positive Aspects of Competition The competition among delivery companies undoubtedly has positive aspects for consumers. Consumers can reduce costs through various discounts and promotions. Notably, large discount events such as "Baedal Minjok's Chicken Discount Event" and "Yogiyo's Lowest Price Guarantee" offer consumers opportunities to order food at lower prices. In such a competitive environment, consumers are likely to demand better service and quality, leading to overall market improvement.

  • 3.The Side Effects of Free Delivery On the other hand, the continuous provision of free delivery services has resulted in some side effects. First, delivery companies may reduce margins with restaurants or place a burden on delivery workers' labor conditions to maintain high discount rates. This can lead to a deterioration in working conditions for delivery workers and a decline in food quality.

Case Study: Price Competition Among Delivery Platforms In recent years, "Baedal Minjok" and "Yogiyo" have engaged in intense price competition, resulting in a barrage of free delivery events. However, as this price war intensified, self-employed businesses began to lose profitability, ultimately leading to declines in food quality and service quality. Many restaurants, facing reduced delivery revenue, have experienced management difficulties, including staff reductions and cuts to marketing budgets, which translated into lower service quality for consumers.

Conclusion In conclusion, while free delivery and competition among delivery companies can provide consumers with temporary benefits, they may also lead to structural issues within the industry in the long term. Consumers may enjoy the benefits of lower prices, but this may ultimately impact the working conditions of delivery workers and the sustainability of restaurants. Therefore, consumers need to recognize the importance of not only price but also service quality and workers' rights. To create a healthier delivery ecosystem, all stakeholders—including consumers, business owners, and delivery companies—must seek mutually beneficial solutions.

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