South Korean logistics company launches O-NE, delivery service even on holidays

The logistical advantage of Coupang, the first company to implement the delivery service during the seven-day week in that country, has diminished due to competitors implementing the same business model.

Coupang Inc., which has long dominated the domestic logistics industry with its own fulfillment network, now sees its competitive advantage diminish.

According to industry sources, e-commerce companies that previously struggled to compete with Coupang's logistics efficiency have benefited significantly from launching delivery services every day of the week.

New era in south korean deliveries

One example is CJ Logistics Corp., Korea's largest parcel delivery company, which recently announced the launch of O-NE, allowing deliveries on Sundays and holidays.This initiative has enabled major e-commerce platforms, which previously did not deliver on weekends, to offer shipments on seven days of the week, matching Coupang's logistics model.

Gmarket Inc., another logistics company in that country, also quickly adopted the delivery system in the seven days, followed by 11Street, which introduced a same-day delivery service on weekends on February 22.

Impact on the market

The service has been particularly well received by sellers of consumer goods and fashion, with food suppliers representing 24.7% of new registrations in January and February, according to data from CJ Logistics.

“Although it is still in its early stages, we are already seeing a noticeable increase in the volume of” deliveries, a Gmarket representative said.

With the proven effectiveness of seven-day deliveries, other logistics companies, such as Hanjin and Lotte Global Logistics, are now considering similar services.

Meanwhile, Naver has stepped up its competition with Coupang by rebranding its delivery service as N Delivery.

“Since the launch of Sunday deliveries in April 2024, transaction volume has increased by 80%”, said a Naver.“ representativeWe expect further growth following the change of brand

This transformation in the South Korean logistics landscape represents a significant shift for the country's e-commerce market, where Coupang had established a considerable advantage with its Rocket Delivery delivery model.

With pulse.mk.co.kr information