"Delivery Service 'Better Than Coupang' for All Sellers"

'Data-Driven' Logistics Solution Company CEO Yujeongbeom Mesh Korea
Accumulating IT Technology and Big Data Across All Delivery and Logistics Services
AI-Based Optimal Route Offering 'Boorung' Ensures Fast, Efficient, and Safe Delivery
Targets 500 Billion KRW in Sales This Year, Double Last Year

Yoo Jung-beom, CEO of Mesh Korea, is being interviewed on the 6th at Dabong Tower Building in Gangnam-gu, Seoul. Photo by Jin-hyung Kang aymsdream@

Mesh Korea headquarters located on Teheran-ro, Gangnam-gu, Seoul. One wall of this office is decorated with an image engraved with logos of various companies for which Mesh Korea provides logistics services. This image, showing names from large distribution companies to franchise businesses and online sales companies, was created at the request of CEO Yoo Jung-beom of Mesh Korea. It reflects the role and vision of Mesh Korea in connecting the products produced or sold by these companies with consumers. Although it started with delivery, Mesh Korea is now growing into a comprehensive digital logistics company capable of providing solutions for overall logistics. The value Mesh Korea offers to these customers is simple: "We will support better delivery services than Coupang." While Coupang has invested heavily to 'raise an army' in the delivery war to deliver products to consumers faster and more conveniently, Mesh Korea aims to become a 'mercenary' that can compete with Coupang. We asked CEO Yoo directly how Mesh Korea can provide services beyond Coupang’s logistics system.

On the 11th, CEO Yoo said, "Mesh Korea is not a logistics company or service, but a data company," adding, "Our IT technology and big data are involved in all areas of logistics." The foundation of providing services so that all sellers can operate like Coupang or Kurly is the 'power of data.'

◆ ‘Booroong’ driven by data=Founded in 2013, Mesh Korea has steadily accumulated data in the delivery service sector. What they sought by providing optimal solutions to restaurants and delivery riders was 'actual data.' Even now, CEO Yoo explains, "All routes taken by riders are being accumulated as actual data."

Based on this, Mesh Korea’s ‘Booroong,’ which diversified logistics means with not only its own motorcycles but also small cars, cargo trucks, bicycles, and electric kickboards, has evolved into a solution where artificial intelligence (AI) informs riders of the optimal delivery routes. CEO Yoo said, "Through machine learning functions, it reflects delivery riders’ driving habits and preferred routes to recommend the best route," adding, "It is not just about dispatching for fast and numerous deliveries, but also supports efficient and safe delivery performance by riders." This transportation management system (TMS) optimizes daily delivery vehicle operations and enables efficient delivery planning.

This data also helps improve management efficiency beyond delivery. For example, in restaurants, order and delivery data inform where and how to sell to reduce leftover inventory or whether to expand the menu. CEO Yoo emphasized, "The order management system (OMS) enables not only inventory linkage for client companies but also order reception, delivery application, invoice issuance, and delivery tracking," adding, "Inventory can be controlled in real-time at logistics hubs such as fulfillment centers, enabling efficient and cost-saving management."

Yoo Jung-beom, CEO of Mesh Korea, is being interviewed on the 6th at Dabong Tower Building in Gangnam-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

◆ Improving inefficiencies in the traditional logistics market=The business model Mesh Korea built came from a challenge to improve inefficiencies in the traditional logistics market. CEO Yoo discovered problems in the complex domestic freight transport market structure, which is fragmented and entangled with stakeholders, while accumulating big data in the delivery market. He believed that Coupang and Kurly were able to grow by exploiting these inefficiencies in the existing logistics system.

Mesh Korea integrated the existing structure, where products had to pass from manufacturers to distributors, wholesalers, and retailers before reaching consumers, and where logistics means were deployed at each stage, into a single infrastructure with Booroong. Operating motorcycles, small trucks, and logistics hubs on a digital logistics platform based on big data, they built a comprehensive logistics system that delivers directly using IT solutions developed in-house. CEO Yoo said, "We connect about 300 trucks, over 450 small logistics hubs nationwide, and approximately 66,000 affiliated motorcycle riders to implement 1-hour, 3-hour, dawn, and next-day deliveries," adding, "We plan to increase micro fulfillment centers in urban areas to 50 in Seoul and the metropolitan area within this year and eventually expand to 300 nationwide."

◆ Sales target of 500 billion KRW this year=Due to this competitiveness, after investments from Naver and Hyundai Motor Company, GS Home Shopping recently acquired shares in Mesh Korea. CEO Yoo explained that these companies highly valued Mesh Korea’s IT assets as a comprehensive logistics technology company. Mesh Korea is currently conducting a 150 billion KRW investment round led by the company.

Mesh Korea, which recorded sales of 256.5 billion KRW last year, has set a target of 500 billion KRW this year, nearly doubling. Having secured competitiveness in the ‘last mile’ market that delivers products to consumers with an average annual sales growth of 161%, CEO Yoo plans to achieve the 500 billion KRW sales target by expanding the share of logistics services beyond the last mile to 50%.

As a technology company based on data, the current research and development (R&D) workforce of about 100 will be expanded to 200-300. Overseas expansion is also being considered. CEO Yoo stated, "There are several options for overseas business, including solution exports, joint ventures using solutions, and direct business."