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CU's competitive next-day delivery service prepares for battle

Published: 14 Apr. 2025, 18:43

Convenience store chain CU, operated by BGF Retail, launched a next-day delivery service on April 14. [CU]

Convenience store chain CU, operated by BGF Retail, has launched a next-day delivery service as the battle for faster shipping, sparked by e-commerce giants like Coupang, spreads beyond major retailers to convenience stores.

On Monday, CU announced the rollout of the new service, the name of which roughly translates to English as “CU Next-Day Guaranteed Delivery,” which allows customers to receive parcels within 24 hours if they are sent within the same region. It joins the array of CU’s existing delivery options, which include shipping to a different CU store or a specific address, as well as the pickup service.

The latest service is available every day except Saturdays, for parcels dropped off by 6 p.m., which will be delivered to the customer’s specified location the following day.

CU is the first convenience store in Korea to offer a delivery service that guarantees arrival within 24 hours, according to the retailer. The service has begun in Seoul and is set to expand to other major cities. Delivery operations will be handled by logistics company Delibox JoongAng, an affiliate of the Korea JoongAng Daily.

“Typical convenience store parcel services take around two to three days, as items are picked up by a courier during a fixed time window,” a CU spokesperson said. “With the new service, items are collected twice a day — at 4 a.m. and 6 p.m. — making the delivery significantly faster.”

Pricing is also a competitive factor. Deliveries under 500 grams (1.1 lbs.) cost 3,200 won ($2.20), between 500 grams and under 1 kilogram cost 3,900 won, between 1 and under 3 kilograms cost 4,700 won and between 3 and 5 kilograms cost 5,400 won. In comparison, standard delivery rates range from 3,400 won for items under 350 grams to 8,800 won for up to 5 kilograms — making CU’s new option as much as 39 percent cheaper. Until the end of May, CU is offering a 300-won discount across all weight categories, bringing the smallest package rate down to 2,900 won, the cheapest option in the industry.

A customer sends a package through convenience store chain CU, operated by BGF Retail, which launched a next-day delivery service on April 14. [CU]

Parcel services have become a core offering in the convenience store sector. With stores operating 24 hours a day and offering low-cost shipping options, more customers are turning to these outlets for everyday delivery needs. What began as a price war — with services like 7-Eleven’s 990-won shipping — is now gearing toward a fight for speed.

GS25, which launched the industry’s first “half-price” delivery service in 2019, currently offers regional delivery in as little as two days and is considering launching a next-day service.

The overall delivery trend is moving toward what’s known as “quick commerce” — fast shipping. Coupang’s Rocket Delivery service has set a new standard for next-day shipping, and retailers are now pushing even faster options, including same-day and even one-hour delivery.

Emart, Korea’s largest hypermarket chain, introduced quick commerce last year through the Baedal Minjok platform, offering one-hour fresh grocery delivery among select locations in Seoul and the surrounding area. Naver, which is investing heavily in its e-commerce business, plans to launch its own immediate delivery service later this year.

“With fast delivery now a key competitive factor in the retail sector, competition will intensify as companies seek to maximize convenience,” an industry source said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY HWANG SOO-YEON [[email protected]]