1. Executive summary

The logistics industry serves as the veins of the economy. The industry is poised to grow enormously to reach USD 15.5 trillion by 2024. At the same time, the industry is facing transformational change; the rapid growth of the e-commerce market, the transition from business-to-business (B2B) to business-to-consumer (B2C) and consumer-to-consumer (C2C), and the expansion of cross-border trade. With such changes in the market, customers now have a higher expectation for more cost-effective, flexible and faster logistics services. Moreover, existing services focused on storage and delivery transportation must go beyond to meet the growing demand for a wider variety of services. Nevertheless, incumbents are stuck in the old ways, competing against each other and are failing to improve services to meet their customer demands.

The logistics industry is facing a structural problem – due to different interests of participants in the logistics network, no credible protocol exists that enables transparent sharing of data. This makes collaboration inefficient or nearly impossible. The participants are fiercely competing against each other to achieve economies of scale by investing heavily in all ranges of service from first-mile to last-mile delivery. However, this has led to double-investment and crippled the industry with inefficiency. Even in international logistics where collaboration should be relatively easy to achieve, complicated procedures are hindering collaboration because of inefficient data sharing. This inefficient structure for collaboration has left no choice for logistics service providers but to concentrate their services in freight transportation and storage. Henceforth, the possibility of creating greater added-value is decreasing and the cost is rising, and yet the quality of logistics service is falling.

As a blockchain-based logistics protocol, dKargo aims to address challenges that hinder collaboration in the logistics industry and build a new type of an efficient logistics network. dKargo will enable participants to use credible and generally standardized data on a blockchainbased public ledger. dKargo’s plans for the development of the logistics industry are as follows:

1 Maximizing Efficiency of the Logistics Industry : A.I. Route Optimization

Suggest optimal logistics route in which various participants can collaborate and thereby maximize the overall efficiency of the logistics network

2 Evolution of Logistics Ecosystem : Whole-mile Logistics

Build whole-mile logistics and a network that can utilize different modes of transportation other than the conventional freight transport modes and ultimately create an entirely new logistics ecosystem

3 Boundary-Crossing Innovation in Logistics : Interconnected Logistics

Provide a wider range of logistics services to deliver new value by offering various logisticsrelated services

Furthermore, dKargo has a reward system where participants can gain additional incentives for just playing their parts. They can contribute to building a more efficient logistics network by providing logistics services and uploading data, and in return, they can earn additional incentives.

dKargo is providing a new form of logistics service enabling various players to participate in the platform which was previously impossible. For example, not only traditional logistics service providers like courier companies but also motorcycle carriers, users of public transportation, individuals and SMEs can all participate. Moreover, dKargo enables other competent participants who are operating freight transportation and storage businesses to collaborate. Through collaboration, logistics-related sectors such as payment, repairs, and inspection, which are all important to meet the consumer needs, will add new value to the logistics industry.

To achieve dKargo’s objectives, dKargo will expand partnerships with the incumbents. deleo, a startup company specializing in international delivery service, will join dKargo as an early flagship partner. deleo is a rapidly growing company, raising Series C funding with the valuation of KRW 100billion. Currently, Kakao Investment, Lotte Global Logistics, and other major Korean venture capital firms are deleo’s shareholders. deleo also formed a strategic partnership with the U.S. Postal Service (USPS). deleo has a strong competitive edge in cross-border delivery – deleo’s major business network in each country and its infrastructure will be keys to dKargo’s success.

Another flagship partner of dKargo is KakaoPay Express, a logistics service provider from Kakao. Kakaopay is an easy payment service provider from Kakao which is Korea’s no.1 mobile platform with more than 80% of Koreans using this platform. Kakao, alongside Lotte Global Logistics, a major Korean logistics service provider, established a joint venture Easygo, which is responsible for providing KakaoPay Express. More than 50 million active users are familiar with Kakaotalk’s interface; Lotte Global Logistics has a wide range of logistics system and delivery location points such as convenience stores, and deleo is an expert in cross-border delivery. Combining all these strengths together, KakaoPay Express is providing flexible logistics services.

As an open platform, dKargo encourages all businesses that have relevance to the logistics industry to participate in the platform. By building a logistics ecosystem that fairly distributes incentives according to the participant’s contribution, dKargo aims to attract various partners to the dKargo platform.

Ultimately, dKargo aspires to provide efficient logistics services where everyone, including users, logistics service providers, and consignees, can gain greater benefits.