GS Caltex teams up with Ikea to launch pickup service at gas stations

South Korean total energy company GS Caltex said Tuesday it has teamed up with home furnishing retail company Ikea Korea to launch a pickup service at one of its gas stations in Seoul’s Gangnam district, with plans to expand it across the country later this year.

The move will cut the delivery fees to 19,000 won. Ikea delivery fees are relatively high because of the size and weight of the furniture products it sells.

The new move comes as the number of online shoppers who use a pickup service has grown amid the COVID-19 pandemic, GS Caltex said.

The company added it expects the drop in delivery costs to lead to a rise in customers.

Starting with the Gangnam location, Ikea plans to add new pickup points in other cities including Pyeongtaek, Cheonan, Daejeon, Daegu and Changwon later this year. The number of gas stations that provide the pickup service for online Ikea orders is expected to gradually increase further next year, the company said.

In addition, GS Caltex plans to launch another pickup point service that works as a shared warehouse for companies that need warehouse space in urban areas, transforming its gas stations into last mile delivery points.

“Gas stations are great in terms of loadspace but also for logistics vehicles to enter. They are everywhere around the country, making them a good fit for a logistics hub,” one official at GS Caltex said.

By Yim Hyun-su (hyunsu@heraldcorp.com)