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Small businesses spend 830,000 won a month at food delivery apps

Small businesses spend 830,000 won a month at food delivery apps

Posted December. 29, 2018 07:32,   

Updated December. 29, 2018 07:32

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Small restaurants spend more than 800,000 won every month at delivery apps such as “People of Delivery.”

According to the results of the “Investigation on the Use of Online Delivery Apps by Small Businesses” announced by the Small Business Association on Friday, small businesses are paying an average of 839,000 won a month to delivery apps, while 404,000 won was used for app ads services. Small businesses said the biggest problem with delivery app services lie in the excessively high advertisement cost (41.3%). Inducement of excessive competition in the market (33.8%), and lack of regulations on false statements/unfairness followed.

"Actual incomes of small businesses are declining due to the excessive advertisement cost for the apps," the Small Business Association said. "A measure should be introduced so that a fixed amount is paid for the advertisement cost." This investigation was carried out by visiting 1,000 small businesses across the country between November 5 and 30 and interviewing the business owners.


Seng-Hyun Kang byhuman@donga.com