GS Caltex partners with Ikea to offer delivery pick-up service in Seoul

By Park Sae-jin Posted : October 5, 2021, 09:46 Updated : October 5, 2021, 09:51

[Courtesy of GS Caltex]

SEOUL -- South Korea's major refiner GS Caltex has partnered with Ikea, a Dutch-headquartered furniture giant, to provide a hybrid service in which customers can choose to pick up delivered products at a gas station in southern Seoul. The service targets a niche market of consumers who wish to shop online and save delivery fees instead of visiting crowded Ikea stores amid a coronavirus pandemic.

Ikea has seen steady growth since it opened its first store in Gwangmyeong, a southern satellite city of Seoul, in 2014. While young consumers see Ikea's gigantic stores as fun and interesting places to visit and shop, older generations find it hard to navigate around Ikea's maze-like stores. A minimum delivery fee of about 59,000 won ($49.7) is charged per delivery.

GS Caltex said in a statement on October 5 that the refiner joined hands with Ikea to open a pick-up zone in Gangnam, a southern Seoul district well-known for its fashion and culture. Online shopping customers can designate the gas station as their delivery destination. Some 19,000 won is charged each time. Up to six GS Caltex gas stations across the country will support Ikea's pick-up service by the end of 2021.

The relationship between a gas station operator and a furniture retailer is part of efforts by GS Caltex to upgrade gas stations into multi-purpose logistics hubs involving fueling stations, delivery drones, charging stations for electric vehicles and small-sized logistics warehouses for deliveries.

GS Caltex would seek to partner with more companies for similar pick-up services using shared warehouses at gas stations. "Gas stations are ideal for logistics services as their nationwide network can be easily accessed by delivery vehicles and have plenty of spaces to store cargo," an unnamed GS Caltex official was quoted as saying.
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