‘Uber for delivery‘ to debut in Korea next month

    Hong Kong-based logistics start-up GoGoVan, better known as “Uber for delivery,” will debut its Korean-language app next month, a source close to the matter told The Korea Herald.

GoGoVan, founded in summer 2013 in Hong Kong with an app to connect licensed van and truck drivers with users for free, is one of the fastest growing start-ups in Asia, expanding its global reach to mainland China, Taiwan and Singapore, beyond its home market. 

   The company announced the entry to Korea early this year, but the official launch of the Korean version of the GoGoVan app has been delayed for months, due in part to lag time in the app development.

“The rumor that Korean Internet giant Daum Kakao has a plan to enter goods delivery market puts GoGoVan on alert over further delays,” the source said.

“It is critical for an Internet business to have a head start and to establish the brand in the market for its business success.”

Daum Kakao, the operator of the nation‘s top mobile messenger KakaoTalk, has stepped up the expansion of on-demand businesses since its successful launch of the Kakao Taxi app in March to connect taxi drivers with users quickly.

“The company is reviewing 20 to 30 on-demand businesses, including a similar app providing similar services with GoGoVan,” a Daum Kakao spokesperson said. “But it has yet to decide whether to launch an app to compete with GoGoVan.”

The official added that the firm’s second on-demand app after Kakao Taxi will be one for premium taxis.

Regarding the outlook for the online platform business for goods delivery, many industry watchers stayed positive, pointing out the effect of improving working conditions for truck, van and motorbike drivers for express delivery, who pay high commissions to middlemen for orders.

Industry sources said truck drivers, for instance, have paid more than 15 percent commission to their agents per order on average. They can save on the commission when they directly find users in 10 to 15 seconds with the help of GoGoVan app.

“In the short term, the strong opposition of middlemen could be a stumbling block for GoGoVan,” the official said.



By Seo Jee-yeon (jyseo@heraldcorp.com)