[비즈한국] Delivery drivers are protesting Lotte Global Logistics' strategy after the company secured the entire volume of CU convenience store deliveries. The controversy stems from setting the delivery fee at just 150 won per package, even for 'half-price deliveries' which have low profitability. Industry insiders point out that Lotte Global Logistics is aggressively securing volume amid competition for 7-day-a-week delivery, and is shifting the burden onto the workers.
"Actual profit for drivers is less than 100 won"
Lotte Global Logistics has taken over all delivery volumes for the convenience store chain CU. Previously, the delivery volume was shared among multiple providers including Lotte Global Logistics, CJ Logistics, and Dilly Box Central, but starting this year, Lotte handles it exclusively. An official from BGF Retail282330, the operator of CU, stated, "We decided to unify the operator to manage delivery service quality consistently."
With delivery volume unified under Lotte Global Logistics, CU is now able to significantly improve the quality of its 'Half-Price Delivery' (formerly known as 'Thrifty Delivery'). Half-price delivery, a service where items are exchanged from store to store, gained popularity due to its lower cost compared to regular delivery. However, it was frequently criticized for delivery delays and lost items, as it was handled by convenience store logistics drivers rather than dedicated delivery personnel.
A BGF Retail official said, "The delivery time for half-price packages, which previously took up to 6 days, will be reduced to a maximum of 3 business days, providing the same level of speed and stability as regular deliveries," adding, "The rates for half-price delivery will remain unchanged to ease the burden on customers."
While the service competitiveness of CU's half-price delivery has strengthened, the burden seems to be shifting to the delivery frontlines. Discontent over low delivery rates is spreading among Lotte delivery drivers handling these packages.
According to several drivers, Lotte Global Logistics has set the delivery commission for half-price packages at 150 won per unit. This means the profit for a driver handling one half-price delivery is limited to just 150 won.
One driver pointed out, "For regular deliveries, the rate varies depending on the zone, but the minimum is over 800 won. In comparison, 150 won is an absurdly low amount. Since agencies also deduct commission from the delivery fee, the actual profit per package for a driver might not even reach 100 won. It's virtually free labor."
Another driver criticized, "Coupang previously faced controversy for paying 200 won per package for collecting 'Fresh Bags.' Now, Lotte is setting a rate even lower than that. I never imagined I would see a rate lower than Coupang's."
A Lotte Global Logistics official did not disclose the exact delivery rates, stating, "Contract details between agencies and individual drivers vary, so we are not aware of the specifics."
Deficits inevitable without volume
There is also growing dissatisfaction regarding working hours. According to field drivers, delivery work typically starts at the terminal at 6-7 AM. After loading the day's packages, deliveries continue until late afternoon. The problem is that the pickup deadline for convenience store packages is set at 6 PM (in the Seoul metropolitan area), which has effectively lengthened working hours because drivers must revisit convenience stores in their area to collect packages around the time they finish their deliveries.
One driver noted, "Starting at 7 AM and finishing pickups by 6 PM means working over 11 hours. Moreover, if we have to load those collected packages for the next day, we have to go back to the site, so leaving early is practically impossible."
The prevailing analysis is that Lotte Global Logistics chose to monopolize the half-price delivery volume to ensure an early settlement of its '7-day-a-week delivery system.'
Lotte Global Logistics began its 7-day delivery service on January 4th. This is analyzed as a response to maintain market competitiveness while major rivals like CJ Logistics and Hanjin have switched to a non-holiday delivery system. The challenge is that maintaining a 7-day system requires enough volume to operate terminals and line-haul vehicles even on holidays. Without reaching a certain volume threshold, 7-day delivery is likely to face a deficit due to fixed costs like labor and fuel.
An industry official remarked, "To run a 7-day service, you need sufficient volume to back it up. They likely decided to take on all of CU's convenience store deliveries to secure a certain level of volume even on weekends. Accepting the half-price deliveries was essentially part of that."
A Lotte Global Logistics official stated, "Half-price delivery was taken over to increase operational efficiency by consolidating the handling of CU convenience store delivery volumes occurring at the same stores."
As grievances accumulate, collective action is also surfacing. The Federation of Korean Trade Unions (FKTU) Delivery Industry Headquarters plans to hold a rally on the 12th in front of Lotte Delivery's headquarters to protest the half-price delivery system and the 7-day delivery scheme. The Lotte branch of the Korean Confederation of Trade Unions (KCTU) Delivery Workers' Union also announced it will hold a representative meeting on the 25th to discuss the current situation regarding half-price deliveries and specific response measures.
A KCTU Delivery Workers' Union official said, "I am aware that the original contractor (Lotte Global Logistics) informed the agencies that the delivery rate would be 150 won before implementation. However, agencies didn't immediately notify the drivers, and since commissions haven't been paid yet, many drivers are unaware of this." The official added, "The current half-price delivery rate structure is not sustainable within the existing delivery logistics system. It is problematic for a company to pursue such business operations while shifting the burden onto the workers' earnings."