Kakao Takes First Step Toward 'Short-Distance Delivery'

Expansion of Logistics Business
Starting Foot Delivery from Today
Evolving into a Job Platform
Actively Supporting a 'Win-Win' Logistics Ecosystem

[Asia Economy Reporter Seungjin Lee] Kakao is expanding its logistics business. Following Kakao Enterprise's launch of an artificial intelligence (AI) logistics platform last month, Kakao Mobility has started a walking delivery service, evolving into a platform that intermediates the entire inland transportation sector.

‘KakaoT’ Evolves into a Job Platform

On the 2nd, Kakao Mobility launched ‘KakaoT Walking Delivery,’ a short-distance delivery service. This is part of Kakao Mobility’s new strategy to realize a "city without movement." By introducing walking delivery, the platform has evolved from requiring a driver's license for services like designated driving and quick delivery to a job platform that anyone can participate in.

KakaoT Walking Delivery mainly handles orders within approximately 1.5 km, emphasizing the ease with which anyone can start delivery work. Registration takes less than five minutes with just a resident registration number, and after completing online safety training, anyone can begin delivery work at any time. Delivery items are limited to light and easy-to-deliver goods such as bakery products, desserts, and daily necessities. Kakao Mobility has contracts with franchises like Baskin Robbins, Dunkin' Donuts, Paris Baguette, Shake Shack Burger, Eggslut, Pascucci, CU (convenience store), and Olive Young (cosmetics), but does not handle orders from general restaurants. Delivery fees vary by franchise.

In February this year, Kakao Mobility acquired same-day and dawn delivery startup ‘Oneul's Pickup’ and walking delivery startup ‘MG Playing,’ signaling its entry into short-distance delivery services. MG Playing operates ‘Walking 60,’ a B2B (business-to-business) short-distance walking delivery platform, promoting the idea that anyone, including seniors and housewives, can do delivery part-time on foot as exercise whenever they want. This is currently the same model as KakaoT Walking Delivery.

Launch of AI Logistics Platform

Kakao Enterprise is operating ‘Kakao AIRAS,’ an AI-based integrated logistics platform. It enables shippers and members to easily find and connect with each other, collects orders from dozens of shopping malls at once, and supports easy and accurate warehouse management through an automated logistics system.

Kakao Enterprise has expanded its logistics network by securing major existing delivery companies such as Hanjin and Lotte Global Logistics as customers. In cooperation with hy (formerly Korea Yakult), it has fully launched a new delivery service called ‘Predit Delivery Service,’ utilizing 11,000 fresh managers known as ‘Yakult Ajumma.’

With the expansion of logistics businesses by Kakao Mobility and Kakao Enterprise, Kakao has broadened its scope beyond last-mile delivery (direct delivery to users) to include first-mile (from production sites to logistics warehouses) and middle-mile (logistics movement between companies) segments, effectively becoming a platform that intermediates the entire inland transportation sector.

Baek Sang-yeop, CEO of Kakao Enterprise, said, "We will actively support a logistics ecosystem that can ‘win-win’ with partners by expanding the network connecting various participants in the logistics industry."

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