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SPC competes with Coupang, Woowa Brothers in quick commerce

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A delivery person for SPC Group's Happy Crew delivers food in Seoul on April 4. Courtesy of SPC Group

By Kim Jae-heun

Competition is heating up in the rapidly growing “quick commerce” market with SPC Group launching “Happy Crew” delivery services on Monday for its popular franchise businesses such as Baskin Robbins, Shake Shack and Egg Slut. “Quick commerce” refers to delivery services that take less than an hour following order receipt.

SPC provides walking delivery services now, but will gradually expand the business using bicycles and scooters for longer distances next year. For now, the food company's delivery service is only available in 15 districts in Seoul ― including Seocho, Gangnam and Gwanak ― and will not cover the rest of the city.

“Our plan is to exclusively deliver our franchises' foods through Happy Crew. We are only doing so as a walking delivery service now, but once things settle down, we may limit other firms from delivering our products by using scooters or bicycles,” an SPC official said.

Currently, the walking delivery service market is led by Woowa Brothers and Coupang Eats. The two top players currently deliver online orders for SPC franchise foods using scooters and bicycles for longer distances.

When SPC limits Coupang Eats and Woowa Brothers from delivering its franchise foods, business for the two latter firms is likely to suffer, as the food firm operates over 6,000 franchise stores in the country.

“SPC's strength lies in its vast number of franchise stores operating all over the country. When it starts delivering their food orders with scooters and bicycles too, other food delivery players will have to give some of their market share to SPC,” an industry official said.

Meanwhile, SPC Group launched Happy Crew with its marketing affiliate, Secta9ine, utilizing its digital platform and artificial intelligence technology. Delivery staff over 19 years old can work part-time. The company will begin delivery services for iPhone users starting in mid-April.