Delivery platform Burung is presenting a new competitive model in the logistics industry with its next-generation artificial intelligence (AI) automatic dispatch system, Burung Plus. This system goes beyond simply connecting orders with delivery riders by establishing a framework where AI analyzes and optimizes regional logistics operations in real-time, enhancing both operational efficiency and service quality.
According to industry reports, Burung introduced Burung Plus in April. The system simultaneously analyzes pickup locations, delivery destinations, rider positions, travel routes, store preparation times, order density by time, and regional cargo volumes. It consolidates multiple orders into a single flow to design optimal routes while considering the impact of current dispatches on future operations.
If a surge in orders is anticipated during a specific time, riders are pre-positioned, and routes in congested areas are adjusted in advance. This represents an AI-based operational system that manages the entire regional operation as a single entity rather than optimizing individual orders.
This strategy is seen as a way to overcome the structural limitations of the existing delivery market. Traditionally, delivery services have relied on a 'combat dispatch' model, where riders select orders on a first-come, first-served basis. This often results in experienced riders taking the most profitable orders first, leaving less desirable ones for newcomers, which leads to disparities in delivery quality and reduced productivity for new riders.
These strategies have yielded tangible results. In a three-week pilot program conducted in the Jungnang District of Seoul prior to the full rollout, the rate of deliveries completed within 40 minutes improved by 15 percentage points after the introduction of AI automatic dispatch. The service level agreement (SLA) achievement rate for corporate clients also rose to 98%. This demonstrates not only an increase in delivery speed but also a proven quality competitiveness in delivering reliably within promised timeframes.
Specific operational data further illustrates the effectiveness of the AI system. An analysis of 17 regions utilizing AI dispatch in the first half of this year revealed that the average time for riders to reach stores after dispatch decreased from 12.7 minutes to 9.2 minutes, a reduction of about 30%. A strong negative correlation (r=-0.85) was also identified, indicating that shorter store travel times correlate with higher SLA achievement rates. This suggests that the quicker AI can identify the most suitable riders, the better the delivery quality.
Regional operational performance has also visibly improved. Following the introduction of AI, the SLA in Wonmi District, Bucheon, increased by 10 percentage points. Significant improvements were also recorded in Daegu's Dalseo District (9.7 percentage points), Seoul's Jungnang District (9.4 percentage points), and Seoul's Seongbuk District (8.5 percentage points).
Burung's innovation does not stop here. The company plans to continuously incorporate operational data and field expertise accumulated over the past decade into AI learning, evolving into a self-learning system. This structure allows AI to autonomously learn regional order patterns, rider supply, and cargo volume changes, continuously refining dispatch strategies.
By the end of the year, Burung aims to expand the application of Burung Plus to approximately 80 locations, primarily in the metropolitan area and major cities, with plans to extend its operational scope nationwide by next year, fully transitioning to an AI-based automatic dispatch system.
This initiative aims to create a structural innovation model in the delivery market, enhancing delivery capacity and quality to improve customer experience (CX), while simultaneously increasing productivity to boost rider income and Burung's profitability.
Kim Hyung-seol, CEO of Burung, stated, "It is true that the service quality in the existing delivery industry has lagged behind major domestic order platforms. We aim to significantly enhance our market competitiveness based on the AI automatic dispatch system, Burung Plus, making Burung the only viable alternative in the delivery market."
* This article has been translated by AI.
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