CU Half-Price Parcel Service Cuts Delivery Time from Up to 6 Days to 3 Business Days
Next-Day Guaranteed Parcel Service Coverage Expands to Greater Seoul Area Starting January
CU, a convenience store operated by BGF Retail, announced on the 29th that starting January 1st next year, it will unify its domestic parcel delivery service under Lotte Global Logistics.
The key point of this unification is that the delivery speed and reliability of both standard parcel service and Half-Price Parcel Service (formerly known as Affordable Parcel Service) will now be the same. With the transfer of Half-Price Parcel Service, which previously used CU’s own logistics network, to Lotte Global Logistics, the maximum delivery period will be shortened from up to 6 days after drop-off to a maximum of 3 business days.
CU, a convenience store operated by BGF Retail, announced on the 29th that starting January 1st next year, it will unify domestic parcel delivery services under Lotte Global Logistics. Photo by BGF Retail
The shipping fees for Half-Price Parcel Service will remain unchanged. The rates are 1,800 KRW for parcels up to 500g, 2,100 KRW for up to 1kg, and 2,700 KRW for up to 5kg, which are among the lowest in the industry. Considering the continuous rise in fuel costs, labor costs, and operating expenses, the company explained that this is virtually equivalent to a price reduction.
The proportion of Half-Price Parcel Service in total parcel deliveries has been rapidly increasing each year: 1.8% in 2020, 8.2% in 2021, 15.8% in 2022, 25.3% in 2023, 27.4% last year, and 28.5% from January to November this year.
Starting in January next year, the Next-Day Guaranteed Parcel Service coverage area will also be expanded. This service delivers items received before 6 p.m. each day to the customer’s designated location the following day, boasting ultra-fast delivery within 24 hours from shipping to receipt. Launched in April as the industry’s first such service, it has so far been limited to the Seoul area but will be expanded to Incheon and the greater Gyeonggi metropolitan area.
Currently, CU offers several domestic parcel delivery services: ‘Standard Parcel Service,’ ‘Half-Price Parcel Service,’ ‘On-Site Pickup Parcel Service’ (where the courier picks up from a requested location), and ‘Next-Day Guaranteed Parcel Service.’
Yeon Jeonguk, CEO of BGF Networks, stated, “Through this unification of delivery services, we will be able to significantly enhance the quality of our parcel services in ways that consumers can truly experience, by reducing delivery times and expanding coverage. CU will continue to evolve as the most accessible parcel platform in daily life through multifaceted service upgrades from the customer’s perspective.”
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