Kakao T to offer delivery services in partnership with Hanjin

Taxi application operator Kakao Mobility has teamed up with Hanjin Transportation to enter the parcel delivery market.

From left: Hanjin Transport senior vice president and head of the company’s marketing division Cho Hyun-min, Hanjin Transport CEO Noh Sam-seok, Kakao Mobility CEO Ryu Gung-seon and Kakao Mobility Executive Director Ahn Kyu-jin pose for a photo after signing a memorandum of understanding. [KAKAO MOBILITY]

Taxi application operator Kakao Mobility has teamed up with Hanjin Transportation to enter the parcel delivery market.

Kakao's subsidiary Kakao Mobility announced on Monday that it has signed a memorandum of understanding (MOU) with Hanjin Transportation to add a logistics service function to Taxi hailing application Kakao T.

Kakao Mobility's logistics service was launched on the Kakao T application on June 30.

Express courier delivery will be done by drivers registered under Kakao T — including existing taxi drivers — while regular parcel deliveries will be handled by Hanjin Transportation delivery workers. A flat rate expected to be around 4,000 won ($3.50) will be charged for deliveries under 20 kilograms (44 pounds), a cheaper rate than other logistics companies.

The two companies aim to use artificial intelligence (AI) in the new parcel delivery business. Kakao Mobility and Hanjin Transportation will develop autonomous parcel delivery vehicles and an artificial intelligence-based delivery management system that maps out efficient transport routes.

According to Kakao Mobility, it is also considering working with Hanjin Transportation on last-mile delivery. Although specific plans are not decided, Kakao Mobility says that improving the service quality for delivery workers in the last-mile stage is one of the possible areas of development. Last-mile delivery refers to parcel delivery from the last transportation hub to the customer's doorstep.

"The partnership with Hanjin Transport will be the stepping stone to enhance the mobility business via the Kakao T platform," said Kakao Mobility CEO Ryu Gung-seon.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]