SEJONG, Jan. 31 (Korea Bizwire) – Early morning delivery service, while contributing to growth in annual sales of as much as 16 percent last year among South Korean online shopping malls, is also leading way to new social problems.
The Ministry of Trade, Industry and Energy announced on Wednesday that major retailers saw sales increased by an average of 6.8 percent last year compared to the year prior.
Sales increased by 1.9 percent offline and 15.9 percent online. Offline sales accounted for 62.1 percent of sales at major distributors, while online sales comprised 37.9 percent.
All offline retailers, except for malls, saw an increase in sales, but slower than the online sector.
In the online sector, early morning delivery and other fresh delivery services have helped raise sales of all food products.
Early morning delivery service providers, followed by their success, have been regularly hiring more drivers to deliver more shipments.
Companies began looking for drivers with their own vehicles available for early morning deliveries to avoid excessive hiring while a large enough pool of drivers, which went viral among young retirees, housewives, and others as the ‘dream job’.
The problem with this system, however, is that all responsibilities arising from any kind of car accident during delivery fall on the drivers themselves.
Since they work as consigned contractors, not as normal employees, all risks throughout the entire delivery process are borne by the drivers themselves.
An increasing number of ‘private delivery trucks’ may also threaten other parcel delivery services and their employees.
“Heated competition over early morning deliveries is exposing tons of issues,” said the Association of Seoul Milk Franchises in a petition submitted to the National Assembly.
The association complaining that the inclusion of milk and other dairy products in the early morning delivery services is depriving many of their jobs, while using private vehicles for delivery poses a sanitary threat against all shipments.
Ashley Song (email@example.com)