Convenience Store Delivery War... "From Motorcycles to On Foot"

GS Retail and Genesis BBQ signed a delivery service partnership agreement on the 17th.

[Asia Economy Reporter Lim Chun-han] The delivery competition, the biggest issue in the distribution industry, seems to be spreading to convenience stores as well. Major convenience stores such as GS25, CU, Seven Eleven, and Emart24 are diversifying delivery methods and channels, and are intensifying their delivery services.

According to GS25 on the 20th, the total number of delivery service uses last month increased 15 times compared to the same period last year. Two out of three delivery services are rider deliveries, and one is foot delivery. Foot delivery is a form where customers order products through Yogiyo or KakaoTalk, and delivery personnel pick up calls through the Our Neighborhood Delivery (Udeal) app to make deliveries. The delivery radius is within 1.5 km from the convenience store where the ordered product is picked up. Orders are mainly for ready-to-eat food, beverages, and snacks, among which Chicken25 products were especially popular.

GS Retail is expanding its business area to delivery through its own delivery service platform. GS Retail and Genesis BBQ signed a delivery service partnership contract on the 17th. Udeal plans to start delivering orders from about 20 BBQ stores from the end of this month and expand to about 1,800 stores nationwide by the end of the year. Considering that Udeal is a foot delivery service, only deliveries within 700m from BBQ stores will be linked. GS Retail plans to continue expanding partnerships with external companies in the future.

At CU, the number of delivery service uses last month increased by 12.1% compared to the same period last year. Nine out of ten delivery services are rider deliveries, and one is foot delivery. The number of foot delivery uses surged 14 times compared to October last year. BGF Retail is providing services in partnership with MG Playing, a foot delivery specialized company.

Convenience stores are also expanding delivery service channels through partnerships with Yogiyo, Kakao, and delivery agencies. GS25 introduced Yogiyo in March last year and KakaoTalk ordering service in November. CU has secured the most delivery channels including KakaoTalk, Yogiyo, Owen, and Wemakeprice O. Seven Eleven plans to expand KakaoTalk ordering service to 4,000 stores by next month, and Emart24 plans to increase the number of stores capable of delivery service to 1,500 within this year.

An industry official said, “The number of people using convenience store delivery is continuously increasing,” adding, “In a few years, it will become a very basic service.”

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