SEOUL, Jan. 11 (Korea Bizwire) — As ‘fast delivery’ competition is flaring up among major retailers, the number of new delivery and logistics startups is increasing with the market demand for them rising at an explosive pace.
Given that it’s difficult for retailers to establish their own logistics networks, businesses that deliver goods via motorbikes or vehicles on behalf of them are drawing significant attention.
Sportswear maker Fila joined hands with logistics start-up ‘Today Pickup’ to launch its 24-hour same-day delivery service for the Seoul area late last month.
Items ordered in the morning are transported to the logistics center that the logistics startup operates in downtown Seoul and then delivered to households by delivery workers.
GS Retail Co., a major convenience store chain operator, invested 50.8 billion won (US$42.4 million) in April to acquire a 19.53 percent stake in Mesh Korea Co., a local food delivery firm, to strengthen its delivery competitiveness.
Online shopping giant 11st and food and entertainment conglomerate CJ Group invested 25 billion won and 5 billion won, respectively, in Barogo as strategic investors.
The logistics startups are going beyond the limit of simple delivery agencies towards fulfillment and in-house quick-commerce business.
Backed by two logistics centers in metropolitan areas and one downtown logistics center, Mesh Korea, for example, stores products from meal kit companies at its logistics centers and delivers them at dawn.
Delivery platform operator Barogo in August last year launched the ‘Ten Go’ service, in which it directly purchases and stores daily necessities and fresh foods at its logistics centers and then delivers them within ten minutes when orders are placed.
J. S. Shin (email@example.com)