Seoul logistics startup Wonders has landed 1.3 billion won (USD $1.15m) in investment from K Cube Ventures, Donghoon Investment and Union Investment Partners. The funding follows a previous round of 600 million won in seed funding last year.
Launched in June 2016, Wonders offers fast, same-day delivery of goods across Seoul at a flat rate. The service was the first of its kind in Korea, charging just 5000 won (approx $4.50) for the delivery of goods within three hours. Costs for other same-day courier services vary depending on the distance, day of the week and weather conditions for each delivery.
Wonders’ delivery system also differs from the standard point-to-point system most quick other companies use, and instead uses a hub and spoke system named “Wonder Bridge” which systematizes deliveries at a central point, combining them if possible.
Deliveries ordered via a mobile app are collected and brought to distribution centers. These centers are located at five stations around Seoul’s Line 2, a loop connecting the city’s major areas and the busiest subway line. From there, goods are transported to local distributions points (Wonder Spots) and whisked away by motorcycle to the final destination.
Wonders has increased the efficiency of its service by sending deliveries on regular routes of its B2B customers such as major online commerce sites including G Market, 11Street, and Ticket Monster. Last month, a partnership was signed with Hanjin Transportation, and the company is also preparing additional partnerships to offer more services to customers.
In addition to this, Wonders is also developing its own transport management system (TMS) which will designate optimal delivery routes based on data collected over the year, and plans to expand its service to cover both Seoul and Gyeonggi areas — which make up 70% of the quick courier market — by the end of the year. Innovation of ordering and logistics systems to improve the cost structure and working conditions for the day courier industry is one of the main goals of the company.
“Unlike standard delivery services, Wonders began while questioning the cost of day courier services which varied with distance, as well as focusing on the dissatisfaction that many experience in such a big market,” says CEO Kim Changsu. “We will use the investment to focus on upgrading our systems and expansion of our centers.”
