B2B Logistics Leader Mesh Korea, Excelling in Quick Commerce Outsourcing as Well

Distribution and Logistics Industries 'Join Hands'... Quick Commerce Entry Barriers Lowered

Mesh Korea Burung's Urban Fulfillment Center in the Gangnam Area

[Asia Economy Reporter Kim Cheol-hyun] Recently, as 'quick commerce' has emerged as a key topic in the distribution industry, outsourcing services by specialized distribution logistics companies equipped with related infrastructure and know-how are gaining attention. This is because distribution companies need to make significant investments in securing infrastructure and systems such as urban logistics hubs to provide quick commerce services.

According to industry sources on the 30th, Mesh Korea, known as 'Booroong,' is standing out in the quick commerce outsourcing market by handling services such as Emart's 'SSG GO' and GS Retail's instant shopping service 'Yomart.'

Quick commerce is a service that stores products in urban logistics centers or stores and delivers them quickly once an order is placed. Delivery is usually completed within one hour after ordering. It first started with food delivery platforms like Baedal Minjok but has recently expanded its delivery range to various product categories such as fresh food, processed food, and daily necessities. This indicates that consumer demand for fast delivery is growing significantly. The domestic quick commerce market, estimated at 350 billion KRW in 2020, is expected to grow to around 5 trillion KRW by 2025.

Mesh Korea provides quick commerce outsourcing services for Emart's 'SSG GO,' delivering fresh products such as fruits, meat, and seafood, as well as various daily necessities within one hour through urban logistics centers. GS Retail's 'Yomart' also expanded its delivery area nationwide just fifteen days after launching the service in the metropolitan area last month. Pulmuone's eco-friendly food brand, Orga Whole Foods, has partnered with Mesh Korea to use its own stores and Mesh Korea's MFC (Micro Fulfillment Center) as urban logistics hubs. Orga Whole Foods stores products in urban MFCs and delivers immediately upon order.

Mesh Korea has proactively responded to changes in distribution trends over the past few years by restructuring its primarily two-wheeled delivery service into a mixed two- and four-wheeled delivery system. It has established four large fulfillment centers in the metropolitan area, three urban MFCs, and over 520 directly operated logistics hubs nationwide. These logistics hubs are connected with a directly operated last-mile delivery network to provide quick commerce services.

In particular, Mesh Korea's urban MFCs are equipped with facilities and dedicated delivery vehicles capable of storing products ranging from ambient to refrigerated and frozen goods, helping distribution companies quickly develop quick commerce businesses without separate infrastructure investments. Currently, Booroong's quick commerce delivery uses a two-wheeled delivery logistics network directly managed by the company and an AI-based dispatch program, achieving a delivery completion rate of over 90% within one hour.

A logistics industry official said, "In the quick commerce business, having an urban fulfillment center and a system capable of delivery within one hour is the most important, but few distribution companies can meet these requirements." He added, "Quick commerce outsourcing is actively utilized recently, especially by distribution companies seeking to expand consumer touchpoints or improve distribution logistics efficiency, as it can be linked with various delivery methods such as dawn delivery and dedicated delivery in addition to fulfillment services."

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