[Future of Delivery] Delivery Robots Appear on Gangnam Streets... Service Starts This Year-End

Delivery Robot Startup Newbility Deploys Over 20 Delivery Robots in Gangnam 3 Districts
Service Linked with 7-Eleven... Overseas Expansion Plans Within 5 Years Under Review
KCCI Supports Delivery Robot Adoption... Related Market Expected to Reach 138 Trillion Won in 2024
Calls for Regulatory Reform... "Obstacles Like the Living Logistics Act"

Delivery robot 'NewBee' by startup Newbility. Newbility plans to introduce about 20 AI delivery robots in the three Gangnam districts of Seoul (Seocho, Gangnam, Songpa) as early as this November.
[Photo by Newbility]

[Asia Economy Reporter Lee Junhyung] Delivery robots will soon be seen on the streets of Gangnam, Seoul. Delivery robot startup Newbility plans to deploy dozens of outdoor delivery robots as early as the end of this year to launch a delivery service linked with the convenience store franchise Seven-Eleven. As the delivery market rapidly grows, major companies such as LG are also entering the delivery robot development field one after another, signaling that industry competition is intensifying. There are also concerns that logistics-related regulations are not keeping pace with the development speed of delivery services.

According to industry sources on the 30th, Newbility will introduce about 20 AI delivery robots in the three Gangnam districts (Seocho, Gangnam, Songpa) as early as November this year. The company plans to select five stores for a pilot program to provide delivery robot services near those stores. General consumers can easily use the service through platforms like ‘KakaoTalk Order,’ which allows purchasing convenience store items. This means quick commerce (instant delivery) services will also be possible via delivery robots. However, due to technical limitations, delivery is only possible up to the front of the building. Newbility is also considering expanding overseas to countries such as Japan and Taiwan, where convenience store infrastructure is well established, in collaboration with Seven-Eleven around 2024-2025.

This is the first case in the Gangnam area where the general public can use outdoor delivery robot services. Previously, Woowa Brothers started developing delivery robots in 2017 and began pilot delivery robot services for residents at the ‘Gwanggyo Alleyway’ residential complex in Suwon, Gyeonggi Province, earlier this year. Domestic robot company Robotis has been developing delivery robots since 2018 and has been conducting demonstrations in the Magok district of Seoul since last year.

Delivery robot 'Newbee' by startup Newbility.
[Photo by Newbility]

The Korea Chamber of Commerce and Industry, which acts as a private channel for the regulatory sandbox, is assisting with the introduction of related services. The regulatory sandbox is a system that temporarily exempts or postpones regulations when launching new products or services. Originally, Newbility was limited to conducting demonstrations in places like Songdo, Incheon due to regulations. However, the company explains that the situation changed with the help of the Korea Chamber of Commerce and Industry. The Ministry of Science and ICT plans to hold a regulatory sandbox review committee next month to examine Newbility’s request for a delivery robot demonstration exemption in the three Gangnam districts.

The introduction of delivery robots this time is expected to serve as a catalyst for market competition. Large companies such as LG and KT are already accelerating delivery robot development. This is due to the rapid expansion of the delivery market caused by COVID-19 and the steady increase in demand for service robots. According to market research firm Strategy Analytics, the global AI service robot market size will grow from about 35 trillion won in 2019 to about 138 trillion won in 2024. This explains why not only startups like Woowa Brothers but also mid-sized and large companies are entering the delivery robot competition.

However, there are opinions that fundamental regulatory reform is necessary for delivery robot development and introduction to gain momentum. If related laws such as the Act on the Development of Living Logistics Service Industry (Living Logistics Act), Road Traffic Act, and Personal Information Protection Act, which overlap and block progress, are not amended, it will be difficult for delivery robot services to spread nationwide. An industry insider said, “Due to the Living Logistics Act, the entity delivering goods must be a person, and the Personal Information Protection Act makes building big data difficult,” adding, “For domestic companies to take the lead in the global delivery robot market, regulatory relief must be supported.”