CJ Logistics to start weekend, holiday deliveries next year

Industry

CJ Logistics to start weekend, holiday deliveries next year

Published: 21 Aug. 2024, 16:55 Updated: 21 Aug. 2024, 17:03

A customer receives a package from a CJ Logistics deliveryman. [CJ LOGISTICS]

CJ Logistics will deliver packages seven days a week — including on public holidays — starting next year in a bid to compete with seven-day delivery providers like Coupang Logistics Services.

Korea's largest logistics company announced its plan Tuesday to launch a delivery service called "Everyday O-NE,” which will run even on weekends and holidays, a move seen as a response to the growing market dominance of its rival, Coupang.

Before its official launch, the logistics firm plans to use AI and big data technology to simulate the planned delivery service through the end of this year.

The logistics giant will also provide third-party logistics services to other delivery companies that lack their own systems, handling packaging, delivery and return orders on their behalf. Smaller businesses will now have access to one-day and weekend delivery options, which are still exclusive to select e-commerce platforms with their own logistics infrastructure.

The new move will likely intensify competition between CJ Logistics and Coupang, a rivalry that was ignited when Coupang launched its own delivery service unit, Coupang Logistics Services, in 2021 and began offering it to smaller businesses.

According to data from the Korea Integrated Logistics Association, Coupang's market dominance has since increased from 12.7 percent to 24.1 percent, while that of CJ Logistics has declined from 40 percent to 33.6 percent in the same period.

CJ Logistics and Coupang will also implement a five-day workweek. This change comes in response to widespread criticism of the delivery industry's demanding work hours, which have led to frequent strikes. Through this initiative, the two firms aim to create more sustainable and flexible operating systems that will benefit both workers and businesses.

"This change will benefit customers, industry management and employees," said Yoon Jin, the CEO of CJ Logistics' domestic business arm. "As a major e-commerce firm, we will continue to set new standards for the industry."

BY PARK YOUNG-WOO [yoon.seungjin@joongang.co.kr]