Late Dawn Delivery... 'Same-Day Delivery' Competition Ignites

[Asia Economy Reporter Kim Cheol-hyun] As non-face-to-face (untact) consumption expands due to the novel coronavirus infection (COVID-19), competition to deliver groceries and daily necessities faster has intensified. As Lotte has officially entered the online grocery shopping market through 'Lotte On,' Coupang has played the 'same-day delivery' card based on its logistics infrastructure and technology built so far.

Coupang's 'Rocket Fresh Same-Day Delivery' is a service that delivers fresh food ordered before 10 a.m. by 6 p.m. on the same day. Customers can order food via mobile at home or on their way to work in the morning and receive it around the time they leave work. The Rocket Fresh service is provided to members of Coupang's membership program, Rocket Wow Club, and is available anywhere nationwide where Rocket Delivery service is offered. The minimum order amount is 15,000 KRW.

The background enabling Coupang to provide same-day delivery service lies in its logistics infrastructure and artificial intelligence technology. Coupang has built a frozen and refrigerated logistics infrastructure equivalent to 14 soccer fields to keep products fresh. As of last year, there are 168 Rocket Delivery centers nationwide, and the number of consumers living within a 10-minute delivery distance from these centers, called the 'Rocket Delivery living zone,' is about 34 million. Same-day delivery is possible based on this densely established nationwide delivery network. Additionally, through an AI system, inventory and orders are processed quickly and stably, allowing fast inbound and outbound shipments based on analyzing customers' ordering patterns. Thanks to this logistics infrastructure and technology, a wide variety of foods, including fruits, vegetables, beef, hairtail fish, and abalone?totaling about 8,500 items?can be delivered fresh to customers' tables on the same day.

Earlier, Lotte also introduced the 'Baro Delivery' service with Lotte On, where products are picked immediately upon order. In collaboration with Lotte Mart, customers can receive ordered products within 1 to 1.5 hours after ordering. Delivery is carried out from Lotte Mart's fulfillment stores, currently established at Lotte Mart Junggye Branch and Gwanggyo Branch. For department stores, the Baro Delivery service is expected to gradually expand, starting with Lotte Department Store locations in Seoul and the metropolitan area.

WEMAKEPRICE (WMP) also launched a same-day delivery service last month in partnership with the online mall GS Fresh. They opened the 'Mart Same-Day Delivery Section,' where customers can receive mart products at their desired time on the same day. The available items include about 12,000 daily necessities such as fresh foods like vegetables, fruits, and meat, as well as dairy products, bakery items, beverages, and household goods. For purchases over 30,000 KRW, customers can receive free delivery at their preferred time between 10 a.m. and 10 p.m.

By entering the delivery address, customers can immediately check the available same-day delivery times. Delivery is made four times a day, and reservation orders are also possible. Same-day delivery is available nationwide, including Seoul and the Gyeonggi metropolitan area, with plans to gradually expand the service area. Some regions such as remote islands and Jeju Island are served by parcel delivery. A WEMAKEPRICE official said, "We expect to enhance customer satisfaction and shopping convenience by providing daily necessities same-day delivery service together with GS Fresh."

This content was produced with the assistance of AI translation services.