CJ Logistics launches ‘everyday delivery service’

Logistics giant introduces 365-day deliveries to challenge Coupang

CJ Logistics, a leading logistics and supply chain company in South Korea, has introduced its seven-day delivery service, “everyday O-NE,” starting Jan. 5. This milestone marks the company’s first 365-day delivery operation in its 32-year history since launching parcel services in 1993. Previously, CJ Logistics paused deliveries on weekends and public holidays.

The move reflects growing demand fueled by the e-commerce boom, which has positioned parcel delivery as a vital component of online retail. Industry experts cite Coupang’s launch of its Rocket Delivery service in 2014 as a pivotal moment that compelled CJ Logistics to adapt. Initially offering next-day delivery exclusively for its own inventory, Coupang later expanded to include products from third-party vendors, reshaping the logistics landscape and challenging CJ Logistics’ longstanding dominance. This intensifying competition highlights the close interconnection between e-commerce platforms and logistics providers. The escalating domestic logistics war is raising questions about its potential impact on the broader e-commerce market.

Over the past decade, Coupang has invested more than 6.2 trillion won (approximately $4.22 billion) in logistics infrastructure, deploying parcel-sorting robots and hiring delivery drivers to strengthen its capabilities. Initially focused on direct retail, Coupang entered the third-party logistics sector in 2023, providing delivery services for independent sellers. This shift has increasingly blurred the boundaries between retail and logistics, previously treated as separate industries.

Coupang overtook CJ Logistics in parcel delivery market share for the first time in 2023. According to Meritz Securities, CJ Logistics held 32.5% of the market in Q4 2023, but by Q1 2024, Coupang’s share climbed to 34.8%, surpassing CJ Logistics, which fell to 29%. The gap has since widened. In response, CJ Logistics announced plans in Aug. 2024 to launch a seven-day delivery service in Jan. 2025. Coupang countered by enhancing its Rocket Delivery service in Nov. 2024, focusing on providing consumers with more precise delivery updates.

Graphics by Kim Hyun-kook

Most South Korean e-commerce platforms, apart from a few like Coupang and Market Kurly with in-house logistics networks, rely on third-party providers such as CJ Logistics for deliveries. This dependency has limited their ability to offer competitive options like dawn or next-day delivery, increasingly sought after by consumers. CJ Logistics’ transition to year-round delivery aims to address this gap and bolster its position in the market.

To expand its reach, CJ Logistics has pursued strategic partnerships. In June 2024, it signed a business agreement with Shinsegae Group, taking over key delivery operations for its e-commerce platforms Gmarket and SSG.com. The company also serves as Alibaba’s primary logistics partner in South Korea, managing 80% of its domestic parcel deliveries. This collaboration is expected to grow as Alibaba and Shinsegae plan to launch a joint e-commerce venture in South Korea, which is likely to boost CJ Logistics’ parcel volume further.

Naver Shopping, regarded as Coupang’s chief rival in the domestic e-commerce landscape, also relies on CJ Logistics for its delivery services. These include same-day and next-day options, as well as specialized services like “express delivery,” which ensures arrival within an hour of purchase, and “dawn delivery or early morning delivery,” which guarantees next-morning arrivals. An industry insider commented, “If CJ Logistics successfully rolls out its seven-day delivery service, it could escalate competition with Coupang, enabling the company to strengthen its logistics network further.”

[Shin Jee-in]

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