BaedalTeukgeup: A Case Study of South Korea’s Public Food Delivery Platform

^{Delivery riders hold signs reading “Regulate the exploitation of self-employed workers and delivery riders” during a protest organized by the Rider Union in South Korea.}

Why Do Government-Led Platform Initiatives Face Challenges?

As an ICDE fellow for the 2025/2026 cycle, I am embarking on a research project exploring why government-led digital platforms, aimed at creating equitable alternatives to private monopolies, often face significant challenges and risks. My project specifically analyzes the case study of BaedalTeukgeup, initiated by the Gyeonggi-do government as a public alternative to dominant private delivery services, to identify and examine economic, technological, and operational risk factors that can undermine such initiatives.

Policy Context and Market Challenges

BaedalTeukgeup emerged within a broader policy context marked by concerns about monopolistic behavior among dominant private delivery platforms. The initiative was primarily motivated by a need to address imbalanced market dynamics, such as high intermediary fees, limited negotiation power of small businesses, and negative impacts of private monopoly on local economies. The COVID-19 pandemic further exacerbated these problems, significantly increasing dependency on delivery platforms and highlighting the financial vulnerability of small businesses. The public’s growing frustration with these platforms’ high commission fees and limited transparency intensified the demand for an alternative public delivery service.

The problematic nature of private monopolies in digital markets is not unique to South Korea. As evidenced by Driving Economic Justice, small businesses and workers worldwide often face significant disadvantages due to exploitative practices by dominant platforms that leverage their market position to maximize profits at the expense of service providers and consumers.

Economic Misalignments and Market Dynamics

One of the critical economic challenges faced by public digital platforms is their competition against highly capitalized private companies. Reports such as Driving Economic Justice illustrate comparable struggles in the United States, where public or cooperative platforms faced significant disadvantages due to financial disparities when competing against well-funded private firms. BaedalTeukgeup similarly has encountered economic barriers, particularly regarding scale and financial sustainability, when juxtaposed against South Korea’s entrenched private platforms, limiting its market competitiveness.

Moreover, examining Kerala’s initiatives demonstrates how crucial achieving scale and collective bargaining power is for public platforms. Such comparisons will provide valuable insights into the economic strategies that BaedalTeukgeup could consider to mitigate its economic vulnerabilities.

Technological Limitations and Digital Enclosure

Digital enclosure, whereby platform designs predominantly favor private ownership at the expense of users and workers, represents another significant challenge. Scholz’s work emphasizes democratic platform governance models, contrasting sharply with typical commercial platforms that monetize user data. BaedalTeukgeup’s technological limitations—such as constrained user interfaces and limited interactive features—highlight critical risk factors for user disengagement and operational inefficiencies.

The Brazilian cooperative platform Coomappa in Araraquara has demonstrated potential success by adopting user-centered technological innovations and cooperative governance structures. . My research will explore how BaedalTeukgeup could adapt similar innovations to enhance user engagement and address technological inadequacies.

Operational Inefficiencies and Misaligned Incentives

Operational efficiency suffers when public policy goals conflict with market realities. BaedalTeukgeup has experienced challenges related to aligning equitable pricing, provider protection, and market competitiveness, which have impeded effective operations. Successful cooperative platforms such as the Kerala Food Platform provide a critical reference for operational alignment and market resilience, offering a framework that BaedalTeukgeup could potentially adopt.

Comparative International Insights

Examining successful international cases provides essential comparative insights for my research. Bologna’s model of municipal support for cooperative platforms demonstrates the efficacy of municipal roles as facilitators rather than controllers of innovation. This insight contrasts with BaedalTeukgeup’s approach, which has seen more direct governmental involvement, limiting flexibility and responsiveness.

Similarly, the initiative by United Taxi Workers San Diego showcases successful public-private collaborations essential for overcoming operational barriers. Additionally, Kerala’s expansive network of platform cooperatives highlights the importance of strategic partnerships and supportive infrastructure that BaedalTeukgeup could learn from to address its operational risks.

In-Depth Analysis from BaedalTeukgeup Case Study

Seo specifically highlights BaedalTeukgeup’s incomplete valuation methods, pointing out inadequacies in reflecting value trade-offs inherent to public platforms. The governance structure of BaedalTeukgeup is described as somewhat closed, limiting the direct participation of various user groups such as service providers and consumers. This limited participation could prevent broader utility gains and user satisfaction, significantly increasing operational risk. Moreover, the collaborative governance model utilized by BaedalTeukgeup has shown limited user participation, characterized by hierarchical decision-making processes which could undermine the platform’s responsiveness and adaptability.

Goals of My ICDE Research Project

Through this project, I aim to:

1. Highlight necessary financial strategies essential for public digital platforms to sustain competitiveness against private incumbents.
2. Identify critical technological innovations needed to maintain user engagement and counteract risks associated with digital enclosure.
3. Propose operational frameworks that align public objectives with market dynamics, improving governance to mitigate risks and unintended consequences.

By examining BaedalTeukgeup’s specific challenges and potential risk factors identified by Seo, my research aims to deliver actionable recommendations and guidelines for policymakers and platform designers aiming for equitable, sustainable, and competitive public digital interventions.

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