Lotte Accelerator, PLG, and
Lotte e-Commerce Sign Tripartite Business Agreement
One-Hour Delivery Jamsil Expansion
Introduction of Open Platform
Real-Time Online Delivery Order Reception
Direct Pickup and Delivery Method
Prospect of General Public Delivery Service
Competition with Coupang and Baemin
Real-Time Use of Delivery and Returns
[Asia Economy Reporter Seungjin Lee] Lotte Shopping's integrated online shopping mall, Lotte On, is entering the delivery war. It will introduce a system that delivers immediately upon order, beyond dawn delivery and same-day delivery.
Delivery at the Customer's Desired Time
According to the distribution industry on the 20th, Lotte Shopping's e-commerce division plans to launch an expanded version of the currently operated ‘One-Hour Delivery Jamsil’ through a tripartite business agreement with Lotte Accelerator and PLZ.
‘One-Hour Delivery Jamsil’ is a service that used Lotteria's delivery last April to deliver Lotte GRS products within 2 km of Jamsil Station. After a pilot operation, the service expanded in August to include about 600 items such as meal kits and cosmetics from Lotte Mart and LOHB's. Lotte On will introduce an open platform where delivery calls are sent to delivery drivers as soon as consumers order products, and drivers choose and deliver the orders. This is similar to how delivery drivers at restaurants receive orders in real time, pick up food, and deliver it.
Existing online delivery accepts orders until a certain time and then delivers them collectively from logistics centers, which takes a lot of time from order receipt to delivery. In contrast, the open platform allows multiple delivery drivers to receive online delivery orders in real time and pick up and deliver directly from logistics centers, enabling just-in-time (on-time) delivery.
In particular, PLZ, which signed the business agreement with Lotte On, owns regional hub logistics centers equipped with refrigerators and freezers, possessing cold chain capabilities, making just-in-time delivery of fresh food possible.
Competition with Coupang Flex and Baemin Connect
There is also a prospect that Lotte On will launch a general delivery service similar to Coupang Flex and Baemin Connect by combining the open platform. Just-in-time delivery often involves delivering small quantities of goods over short distances, and since order receipt and delivery proceed in real time, general people can participate in delivery as short-term part-time workers.
Combining delivery using hub logistics centers and general people's participation in delivery increases possibilities such as faster return services. PLZ, which partnered with Lotte On, has a mixed delivery infrastructure of two-wheel and four-wheel vehicles, enabling real-time use of delivery and returns.
Since its launch in April last year, Lotte On has been striving to expand various delivery services. Customers can choose delivery methods including ‘Baro Delivery’ (Lotte Department Store and Lotte Mart), which delivers products within two hours after ordering, ‘Dawn Delivery’ (Super), which delivers products by 7 a.m., and ‘Smart Pick,’ where customers pick up online orders at stores. Allowing consumers to choose delivery options is interpreted as an intention to make delivery itself a core competitive advantage.
A Lotte Shopping official said, "We are currently making efforts to introduce new delivery services, but nothing has been concretely decided yet," adding, "We plan to undertake various attempts to expand delivery scale."
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