Incheon 'Small Business Half-Price Delivery' Gains Response... 8,550 Uses in 5 Weeks of Implementation

Number of Contracted Companies Increased from 2,362 to 3,320, a 48% Rise
Significant Growth in Pickup Service Users
Collection Centers to Operate at All Incheon Subway Stations Next Year

Incheon City is showing tangible results from the 'Half-Price Courier Service for Small Business Owners,' the first project of its kind implemented by a local government nationwide.

According to the city on the 4th, since launching the courier service at half the market price for local small business owners last October, the number of uses over five weeks has reached 8,550. The number of contracted companies also increased by 48%, from 2,362 at the start of the project to 3,320.

With the daily average number of courier service uses by small business owners exceeding 100, the service recorded a daily maximum of 667 shipments on the 25th of last month. Accordingly, the city changed the usage limit from the original annual 120 shipments per company to unlimited until the support budget is exhausted.

The half-price courier service is a project that reduces delivery costs for small business owners by collecting small quantities of goods through a collection center utilizing the subway and signing unit price contracts with courier companies. It is an upgraded version of the same-day delivery service through a shared logistics network that Incheon City has been promoting since 2022. When small business owners drop off parcels at the collection center, they are delivered to the existing courier company collection points via subway and electric cargo vehicles, then shipped to the final destination.

The courier fee is 1,500 KRW for standard delivery based on a 5kg and 100cm size limit, and 2,500 KRW for metropolitan area same-day delivery (Incheon, Seoul, and Bucheon in Gyeonggi excluding Ganghwa and Ongjin). Standard delivery is 2,000 KRW cheaper than the market average price (3,500 KRW), and same-day delivery (4,400 KRW) is 1,900 KRW cheaper. The company visit pickup service costs 2,500 KRW for standard delivery and 3,500 KRW for same-day delivery, about 25% cheaper than the market average price.

Incheon Mayor Yoo Jeong-bok is sending the first half-price delivery item at the opening event of the 'Small Business Half-Price Delivery Support Project' held at Incheon City Hall Station on Incheon Subway Line 1 on the 28th. 2024.10.28 Provided by Incheon City

Along with the positive response to the subway half-price courier service, the number of companies using the pickup service has also increased significantly. Considering that the average number of employees in small business companies is 1.4, the affordable price and direct pickup service help reduce costs and time. As of the 1st, the number of contracted companies for the pickup service reached 3,510, with a delivery volume of 264,536 items. This is a tremendous growth compared to the same period last year, when there were 560 contracted companies and 23,323 deliveries.

The city expects economic effects such as a 25% increase in new market entry rates for small business owners in the online shopping market and more than a 10% rise in annual sales through the half-price courier support. Additionally, by transporting logistics using the eco-friendly subway, vehicle travel distances are reduced by 13% compared to the existing courier system, which is expected to reduce carbon emissions by more than 25%.

The city plans to operate courier collection centers at all subway stations by the second half of next year, expanding from the current 30 stations out of 57 stations on Incheon Subway Lines 1 and 2. About 50% of small business owners using the half-price courier service are located within 300 meters of subway stations, making expansion to all stations necessary.

An Incheon City official stated, "Users of the subway half-price courier service and pickup service are rapidly increasing," and added, "We will continue to expand the half-price courier support project so that small business owners can escape the burden of delivery costs and secure competitiveness through diverse services and quality."