SK Energy-Naver Collaborate on Developing 'Future Logistics Technology' Based on Gas Stations

SK Energy Utilizes Prime Location SK Gas Stations as 'Urban Logistics Centers'

Oh Jong-hoon, CEO of SK Energy P&M CIC (right), and Lee Yoon-sook, CEO of Naver Forest CIC (left), are taking a commemorative photo after signing a business agreement on the 22nd at the SK Seorin Building in Jongno-gu, Seoul. Photo by SK Energy

[Asia Economy Reporter Donghoon Jeong] SK Innovation’s petroleum business subsidiary SK Energy has joined forces with Naver to develop gas stations into advanced urban logistics hubs.

On the 23rd, SK Energy and Naver announced that they signed a business agreement the previous day at the SK Seorin Building in Jongno-gu, Seoul, for "joint development of urban logistics services and future TECH (technology) cooperation." The two companies plan to reduce the logistics burden on small and medium-sized enterprises (SMEs) and collaborate on developing future logistics technology and infrastructure. SK Energy will utilize gas stations as logistics bases for Naver’s e-commerce services, while Naver will advance artificial intelligence (AI) and robotics technologies.

In the mid to long term, SK Energy and Naver plan to build urban micro-fulfillment centers (MFCs) on SK gas station sites to explore various fulfillment possibilities. As MFCs based on SK gas stations with excellent locations expand, SMEs’ products can be stored in nearby logistics centers and delivered, enabling fast delivery services such as same-day arrival. By integrating gas station-based MFCs with local communities, new business models such as real-time live commerce that allows joint purchases at competitive prices and immediate delivery upon customer orders will also be possible.

MFC (Micro Fulfillment Center) refers to a one-stop service that handles all logistics processes?including storage, packaging, delivery, and returns?by receiving products on consignment from sellers and utilizing urban logistics spaces (around 1,000 pyeong) with enhanced accessibility to end consumers.

With the rapid increase in non-face-to-face e-commerce demand due to the spread of COVID-19, the logistics industry is actively securing urban logistics sites and logistics automation technologies for fast and safe delivery. Previously, long-distance delivery from large-scale logistics centers in suburban areas was the norm, but recently, due to the increase of single- and two-person households in urban areas and the expansion of small-quantity, multi-item orders, logistics forms have become more complex. Given the high land prices and high-density development characteristics of urban areas, securing urban logistics facilities has become a challenge for logistics companies. This is why gas station sites located throughout urban areas are attracting attention as an optimal model for urban logistics.

According to this agreement, starting early next year, the two companies plan to operate the "The Better Parcel" service, which consolidates products from multiple SMEs listed on Naver Smart Store for joint collection to efficiently handle logistics processes and reduce logistics concerns for SMEs. Using Goodsflow, in which SK Energy has invested, products from SMEs will be collected by visit and delivered to end consumers through delivery companies. After a pilot operation in some areas of Seoul early next year, the service coverage will gradually expand.

Additionally, the two companies will continue to collaborate on future logistics technology innovations such as demand forecasting, automation of urban logistics centers, and delivery innovation by utilizing AI, cloud, and robotics.

Oh Jong-hoon, CEO of SK Energy P&M CIC, said, "SK Energy is focusing on the new role of gas stations in consumers’ daily lives to strengthen eco-friendly urban logistics services using gas stations. Based on collaboration with Naver, we aim to contribute to expanding a logistics foundation that benefits both consumers and SMEs."

Lee Yoon-sook, CEO of Naver Forest CIC, said, "By collaborating with SK Energy on logistics automation and AI demand forecasting efficiency, we will expand SME-centered 'on-demand' logistics and participate in developing various logistics technologies to reduce the logistics burden on SMEs and create opportunities for new forms of commerce business."

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