A delivery worker (Image courtesy of Yonhap)
SEOUL, Nov. 19 (Korea Bizwire) – In a significant shift within South Korea’s retail landscape, companies are rapidly expanding their rapid delivery services beyond traditional e-commerce boundaries, with offerings ranging from same-day delivery to dawn delivery and motorcycle-based quick commerce.
Naver, which alongside Coupang forms the dual powerhouse of South Korean e-commerce, is planning to launch a “Now Delivery” service promising delivery within one hour. Samsung Electronics has also entered the fray with its “Today Guaranteed” service, offering same-day delivery and installation for products ordered in the morning.
According to industry sources, the delivery speed race, initially ignited by Coupang’s “Rocket Delivery” service, continues to intensify. Coupang’s Rocket Fresh service delivers fresh produce ordered before 10 a.m. by 8 p.m. the same day, with next-day dawn delivery for orders placed after 10 a.m.
The competition has sparked strategic alliances, notably the “cousin alliance” formed in June between Shinsegae Group Chairman Chung Yong-jin and CJ Group Chairman Lee Jay-hyun.
Under this partnership, CJ Logistics handles deliveries for Shinsegae’s e-commerce platforms Gmarket, Auction, and SSG.com, aiming to reduce costs while increasing delivery speeds.
Gmarket and CJ Logistics launched “Star Delivery” in late September, guaranteeing next-day delivery for orders placed before 8 p.m. on weekdays. CJ Logistics plans to introduce a seven-day delivery service, tentatively named “Daily O-NE,” early next year.
Naver plans to launch its AI shopping app “Naver Plus Store” in the first half of next year, offering various delivery options including same-day, next-day, dawn delivery, scheduled delivery, and quick commerce “Now Delivery” service.
The quick commerce market, primarily focused on grocery items delivered within an hour by motorcycle, continues to expand. Baemin (Delivery Hero Korea) operates BMart with 70 urban distribution centers and partners with four convenience store chains and 12,000 supermarket locations.
A Baemin representative noted that the company’s quick commerce platform now offers around 10,000 different items.
GS Retail reported a 90.2% year-over-year increase in quick commerce sales for the third quarter, with strong performance in instant chicken, soft drinks, snacks, and noodles categories. The company currently offers immediate delivery through 15,000 GS25 stores and 500 GS The Fresh locations.
The speed war has extended to installation services as well. Samsung’s recently-launched “Today Guaranteed” service, available in the Seoul metropolitan area, offers same-day delivery and installation for 100,000 won for orders placed before noon through Samsung.com.
Lotte Himart followed suit with its “Today Installation” service, charging 70,000 won for same-day delivery and installation of select appliances ordered by 1 p.m.
Ashley Song (ashley@koreabizwire.com)
