"Sharing·Connection·Growth Delivery Virtuous Cycle Delivery"

Building a Two-Wheeled Logistics Platform Ecosystem, Itaegwon Barogo CEO

CEO Tae Kwon Lee

"Delivery plays a role in helping restaurants struggling due to COVID-19 maintain minimum sales, while also taking care of the meals for local residents who are reluctant to go out," said Lee Taegwon, CEO of Barogo, with a sense of mission. He keenly feels that Barogo's service is closely linked to the livelihoods of small business owners and the daily lives of consumers amid the spread of the novel coronavirus infection (COVID-19). The recognition that delivery is an essential service in everyday life is also the reason he embarked on building a 'delivery ecosystem.'

On the 23rd, in an interview with Asia Economy, Lee said, "We plan to develop a bike model exclusively for delivery riders and also to carry out deliveries of non-food items." Barogo positions itself as a 'short-distance logistics IT platform company.' While apps like Baedal Minjok and Yogiyo are used by consumers to order food, Barogo provides an app used by restaurants and delivery riders to deliver ordered food to the final consumers. Barogo offers this program to over 500 hubs nationwide, more than 45,000 registered riders, and about 28,000 partner companies. Riders are the core of Barogo's business model.

The reason Lee decided to create a bike model exclusively for delivery riders stems from his 'sincerity' toward the core members, the riders. He said, "The most difficult aspect of operating a two-wheeled logistics platform is the insurance issue related to riders," adding, "Riders are constantly exposed to risks, but unlike general automobile insurance, personal injury insurance premiums are exorbitantly high, causing many to hesitate to subscribe." To address this, Barogo established 'The Barogo Safe Care' insurance in partnership with Hyundai Marine & Fire Insurance. However, Lee believes that more fundamental problems need to be solved first. He explained, "The reason insurance premiums are outrageously high is that there is no delivery rider-specific data. Currently, the loss ratio for two-wheeled vehicle insurance is based on data from quick service companies that perform mid- to long-distance deliveries," and introduced, "Barogo established a joint venture called 'Moving' with two-wheeled vehicle manufacturer KR Motors and fintech security company Aton to solve this problem."

Founded last year, Moving plans to develop a bike model exclusively for delivery riders and collect data solely on delivery riders based on this. This will allow accumulation of riders' driving records and enable reasonable responses by connecting to designated repair shops in case of accidents. Moreover, this data will serve as a foundation for providing 'delivery consulting' that goes beyond simple delivery by analyzing the regions and commercial districts connected to deliveries. Lee explained, "If there is an offline store besides a restaurant, delivery services can be provided," and added, "We will offer comprehensive delivery consulting to companies that only operated offline stores on how to create delivery products and how to package them."

The nationwide COVID-19 pandemic was both an opportunity and a crisis for Barogo. Although orders grew by 15% monthly, all members had to activate an emergency system to ensure the safety of riders exposed to infection risks. Lee judged that social perceptions of delivery have somewhat changed during this process. Before the COVID-19 outbreak, although the delivery market steadily grew, social perceptions of the delivery industry and the rider profession remained stuck in the past. Now, as the recognition that delivery is essential spreads, a foundation for respect has been established. Lee emphasized, "Barogo's vision is to be 'the happiest company that is most respected for connecting all businesses and customers in the world,'" and stressed, "We want to establish ourselves as a leading company providing short-distance logistics services while pursuing the values of sharing, connection, and growth."