CU launches industry-first drone delivery service for water parks

[Photo by Yonhap]

Convenience store chain CU, operated by BGF Retail Co., has initiated drone delivery services for the first time in the industry, starting with two water parks in the Seoul metropolitan area.

According to the company on Tuesday, the company started drone delivery services from pre-arranged delivery hubs to the water parks in Tancheon, Seongnam. The distance between the departure and destination points is 1.6 kilometers.

CU has prepared seven delivery-exclusive snack packages for the drone delivery, considering demand from outdoor water park customers, including a limited set with popular snack items, a kids set, and an old-fashioned comfort set, all priced at 11,000 won ($8.5).

The drone delivery will be operated between 11 a.m. and 4 p.m. Any water park customers who want to use the delivery service can place orders using an exclusive QR code for delivery orders. Orders are delivered to the pre-determined pickup location.

“Tancheon water parks are popular for many people, but delivery by car or motorcycle hasn’t been easy due to the high risk of accidents. With the introduction of drone delivery, we can now provide a fast and safe service flying over the river,” said an official from CU.

Earlier in July, CU operated drone delivery services for a month, targeting general customers at a camping site in Yeongwol-gun, Gangwon Province. Drone delivery-exclusive sets were delivered to the camping site that is 3.6 kilometers away from a nearby CU store. The delivery sets were packaged with instant noodles, coffee and desserts, or snacks, with each set weighing under 5 kilograms.

The drone delivery at the camping site was part of a pilot drone city project led by the Ministry of Land, Infrastructure, and Transport, in which CU is participating to support the commercialization of drone delivery services. CU is the first of its kind to implement drone delivery in urban areas. CU is also planning to introduce drone delivery services at a camping site in Taean-gun, South Chungcheong Province, in September.

The profitability of drone delivery, however, is still questionable at this early stage. Convenience stores, which mainly sell low-priced products, may face challenges in terms of profitability due to the limited quantity that can be delivered at once.