Dawn Delivery Speed Race Threatens Small Businesses? SOHO President Calls for Policy Review

Newly appointed SOHO (Small and Medium Business Administration) President In Tae-yeon, in her first official statement, has warned that the rapidly escalating speed competition in dawn delivery services is threatening the survival of small business owners, emphasizing the need for a policy review. She expressed concern that the cost burden resulting from excessive competition among platform companies could ultimately be passed on to small merchants, accelerating the collapse of local commercial districts. This is interpreted as a wake-up call, raising serious concerns about the entire self-employed ecosystem that forms the foundation of the Korean economy, going beyond a simple change in distribution methods.

The Shadow Behind the Convenience of Dawn Delivery

President In Tae-yeon’s statement appears to go beyond simply pointing out the problems with dawn delivery services, revealing concerns about the rapid growth of the platform economy and the resulting deepening imbalance. Dawn delivery provides convenience to consumers, but behind it lies a price competition based on the massive capital power of platform companies. This competition ultimately leads to a greater cost burden for small business owners, acting as a factor weakening their competitiveness. In particular, the cost of building and operating the logistics system to maintain the fast delivery speed of dawn delivery services is substantial, and platform companies are likely to pass this on to small merchants in the form of increased commissions.

Crisis in the Self-Employed Ecosystem, the Need for Policy Intervention

The self-employed play an important role in the Korean economy and serve as the basis for maintaining the livelihoods of many people. However, in recent years, small business owners have faced various difficulties such as the COVID-19 pandemic, high interest rates, and high inflation. The emergence of new distribution methods such as dawn delivery has further worsened the competitive environment. The government must recognize this situation and expand policy support to strengthen the competitiveness of small business owners. For example, efforts are needed to support the digital transformation of small merchants and create a fair trading environment with platform companies. Furthermore, rather than easing regulations on dawn delivery services, policies should be designed to minimize damage to small business owners.

Sustainability of the Platform Economy, Seeking Balanced Development

The platform economy can contribute to economic growth through innovative technologies and services, but at the same time, it can cause various social problems such as unfair competition, data monopoly, and labor issues. Therefore, for the sustainable development of the platform economy, the government, businesses, and consumers must all take responsibility and seek balanced development. Platform companies should fulfill their social responsibilities and explore ways to coexist with small business owners, and the government should create a fair competitive environment and protect consumer rights. The case of dawn delivery services is a representative example showing both the light and shadow of the platform economy, and provides important implications for the direction in which the platform economy should move forward.