The city of Gyeongsan, South Korea, is significantly expanding its support for local small businesses through its public delivery app, ‘Meokkkebi’ (먹깨비), with a new round of promotions launching on May 18th. The initiative, backed by a 150 million Korean won (approximately $110,000 USD as of May 16, 2024 XE.com) investment, aims to boost both consumer spending and the financial health of local merchants. This comes as South Korean small businesses continue to navigate challenges related to rising costs and increased competition.
The expanded program builds on the existing success of Meokkkebi, a platform designed to offer a more affordable alternative to larger, commercially-driven delivery services. Unlike many competitors, Meokkkebi charges a remarkably low commission of just 1.5% to its partner restaurants, and doesn’t levy any joining or advertising fees. This structure is intended to maximize profits for business owners, a key component of Gyeongsan’s broader economic development strategy. The app as well integrates with the Gyeongsan Love Card, a local prepaid card designed to encourage spending within the city.
Boosting Local Commerce with Targeted Discounts
The promotional campaign will feature a variety of discounts and incentives throughout the year. Every Wednesday and Saturday, users will receive a 3,000 won (approximately $2.20 USD) discount coupon. New users will also be immediately eligible for a 3,000 won coupon upon registration. Beyond these weekly offers, Gyeongsan City plans to tie additional discounts, ranging from 3,000 to 5,000 won, to key dates on the local calendar, including Children’s Day in May, national holidays, Gyeongsan City Day, the Gyeongsan Plum Festival, and Small Business Day.
A new element of the program, dubbed the ‘Meokkkebi Delivery Fee Care Project,’ directly addresses the rising cost of delivery for both consumers, and restaurants. The city will subsidize 2,000 won per delivery for restaurants that opt to offer free delivery through the app, up to a maximum of 200,000 won per establishment. This represents a significant step towards alleviating the financial burden of delivery fees, which can eat into already thin profit margins for small businesses.
Supporting ‘Good Price’ Businesses and Price Stability
Starting in April, Gyeongsan City introduced the ‘Good Price Establishment Good Price Coupon’ event. This initiative provides consumers with a 2,000 won coupon to apply at restaurants registered as ‘Good Price Establishments’ – businesses committed to maintaining affordable prices despite increasing raw material costs. The city views this as a proactive measure to combat inflation and ensure access to reasonably priced meals for residents. “We are supporting businesses that maintain low prices despite rising raw material costs, contributing to price stability,” a city official stated.
A Focus on Small Business Stability
Gyeongsan Mayor Cho Hyun-il emphasized that the city’s approach extends beyond simply stimulating consumption. “This year, we are pursuing a project with the goal of not only promoting consumption but also stabilizing the management of small business owners and alleviating their actual burdens,” he said. “We expect the expansion of public delivery app support to serve as a catalyst for the recovery of local commercial areas and revitalize the local economy.”
The Meokkkebi app has quickly gained traction as a viable alternative to larger delivery platforms. Its low commission structure and integration with the Gyeongsan Love Card have proven popular with both merchants and consumers. Businesses can register through the ‘Meokkkebi Owner Site’ or by contacting the customer center, while consumers can download the app and create an account to initiate using the service.
The success of Meokkkebi in Gyeongsan reflects a broader trend in South Korea towards supporting local businesses and fostering a more equitable delivery ecosystem. Other cities are also exploring similar public delivery app initiatives to counter the dominance of large, for-profit companies and provide a more sustainable model for local commerce. The long-term impact of these programs will be closely watched as they evolve.
Looking ahead, Gyeongsan City officials will be monitoring the effectiveness of the expanded support program and gathering feedback from both businesses and consumers. The next key checkpoint will be a review of the program’s performance in July, where data on coupon usage, delivery volume, and merchant revenue will be analyzed to inform future adjustments and improvements. The city is committed to refining the program to ensure it continues to meet the needs of the local community.
What are your thoughts on public delivery apps? Share your comments below and let us know how your local community is supporting small businesses.
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