GS Caltex adds furniture pickup to multi-functional role of gas stations

GS Caltex Corp. which has been creative to better employ its network of gas stations in the rise of low-carbon age is adding furniture pickup service to heighten last-mile logistics role of fuel filling space.

The Korean oil refiner from Tuesday is servicing Ikea furniture pick-up, enabling customers to collect their online order at a GS Caltex gas station near home at discounted shipping rates.

A customer can save 70 percent in Ikea furniture delivery fee which costs 59,000 won ($50).

The furniture pick-up service was launched at a gas stations on Samseong-ro in Gangnam-gu, Seoul. The company will add the service to six stations, including those outside Seoul, by the end of this year, with a plan to gradually expand the service across the country.

The latest partnership signals GS Caltex¡¯s aggressive inroads into the last mile service market under its strategy to transform gas stations into a multi-purpose platform in line with changes in customer needs.

Last mile refers to the last leg of transporting products, or delivery from warehouse to the doorstep of the end-customer. The stage has been considered most cost-ineffective in the whole supply chain management and transportation process by eating up 28 percent of the total cost. But due to its importance, companies have been eager to offer improved service.

GS Caltax aims to turn its gas stations as the final stop for mobility and logistics services, such as having customers stop by a station to pick up parcels while filling up a car or rent an e-bike to return home.

For bigger share in the transportation service market, the company is also seeking to add shared storage service and pick-up stations for drone delivery.

The gas station operator is also rapidly adding charging points for electric vehicles. It added its first EV charger in 2019 to its gas station network and now operates over 100 EV chargers across the country.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]