Coupang under fire over ‘no parcel day’ no-show

Industry

Published: 15 Aug. 2023, 16:20 Updated: 15 Aug. 2023, 18:22

Coupang under fire over ‘no parcel day’ no-show

Members of public transport unions demand Coupang join the ″no parcel day″ movement in front of Coupang headquarters in Songpa District, southern Seoul, on Monday. [NEWS1]

Coupang is under fire for refusing to join the annual "no parcel day," a movement designed to give delivery drivers a day off.

The movement was introduced by the Ministry of Employment and Labor, Korea Integrated Logistics Association and logistics companies in 2020 to ensure a holiday for delivery workers. The no parcel day fell on Monday this year, and with Liberation Day on Tuesday, delivery workers got three days off, including Sunday.

Other shopping platforms with their own delivery system, such as Kurly and SSG.com, also did not participate in the no parcel day movement.

Convenience store chains CU and GS25 opted out since they have their own delivery network set up among branches to ship parcels between stores. Parcel demand at GS25 on last year's no parcel day spiked 200 percent from the previous year.

CJ Logistics, the largest parcel delivery company in Korea with a 44.3 percent market share as of June, released a statement on Friday expressing “strong regrets toward the behavior of few companies that disparages the parcel industry’s voluntary efforts.”

Delivery trucks are parked at a logistics center in downtown Seoul on Sunday. [NEWS1]

CJ Logistics’ statement came a week after Coupang released a press report boasting about its courier subsidiary Coupang Logistics Service’s work system on Aug. 4.

“The no parcel day was designated to allow delivery drivers who cannot take a break to go on summer vacations, but Coupang Logistics Service has fixed a chronic issue in the industry and allows its couriers to go on vacation any day of the year,” the e-commerce company argued.

Coupang claimed that its delivery drivers can go on a three-week holiday or work four days a week thanks to a sufficient workforce.

Members of a trade union for delivery workers demonstrated in front of Coupang headquarters in Songpa District, southern Seoul, later that day to denounce the press release.

“Logistics companies agreed on the no parcel day despite the burden on management to promote coexistence in the industry,” said an official from a delivery firm, who also argued that their efforts will be for naught if certain companies take advantage of the vacuum to pocket parcel demand.

Major logistics firms, including CJ Logistics, Hanjin Logistics, Lotte Global Logistics and Korea Post joined the initiative. Delivery requests made to these companies Saturday begin shipping Wednesday.

BY KIM MIN-SANG, SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]