Delivery Orders from Other Courier Services Drop 30-40%... Vroong Alone Grows 10%
First Half Sales Surpass 160 Billion Won... Approximately 8% Increase Year-on-Year
Burung, a delivery agency platform that experienced rapid growth and decline in a short period, is running again. Since being acquired by hy, the company has stabilized through a name change and organizational strengthening, while showing improved performance such as profitability enhancement. In particular, Burung is attracting attention for its growth amid a significant decrease in delivery volumes for delivery agencies due to delivery platforms strengthening their own delivery services and expanding free delivery.
According to the delivery industry on the 12th, while most delivery agencies have seen a significant decrease in delivery volumes, Burung's delivery volume grew by about 10% compared to last year.
It is known that the delivery volumes of major delivery agencies have decreased by about 30-40%. This is largely due to the shrinking delivery market after COVID-19 and the expansion of free delivery by delivery platforms such as Baemin and Coupang Eats, which has greatly reduced store deliveries performed by delivery agencies. Regarding Burung's growth in this market situation, a company official explained, "Although store deliveries decreased like other delivery agencies, the stable business-to-business (B2B) transactions allowed us to proactively secure platform self-delivery volumes from Yogiyo and Baemin."
Due to these factors, Burung's sales also showed growth in the first half of this year. In fact, sales in the first half of this year exceeded 160 billion KRW, an increase of about 8% compared to the previous year. The industry expects Burung to benefit from the ripple effect as other delivery agencies face difficulties due to restructuring and financial troubles. Especially, it is anticipated that corporate clients will flock to Burung, which holds more than 50% market share in the B2B sector. Burung's strength in IT and its ability to respond in line with delivery platforms' efforts to improve delivery productivity, supported by its development organization, also underpin this outlook.
Hy's 'Knock' delivery app, currently piloting in Gangseo-gu, is also seen as a potential opportunity for Burung's delivery volume growth if it expands nationwide. A delivery industry official said, "While delivery agencies are facing worsening management difficulties, Burung, as an affiliate of the hy group with a solid financial structure, is showing stable growth," adding, "Unlike other delivery agencies, its nationwide direct management structure will further expand its strengths in the B2B market."
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