GS Caltex said Monday it has launched drone delivery services at its gas stations on Jeju Island, utilizing them as logistics hubs.

According to the South Korean oil refiner, drones will deliver daily necessities to customers living in rural areas after they place orders through the app of its convenience store chain GS25.

“Gas stations are easy for cargo trucks to enter, have enough storage space and are located all across the country, making them suitable for logistics bases,” GS Caltex CEO Hur Sae-hong said at a drone delivery test event held on Jeju Island presided over by Jeju Province Gov. Won Hee-ryong and GS Retail President Cho Yoon-sung. 

At the event, drones delivered food and drinks to a nearby pension and school and came back in five to six minutes.

The Ministry of Trade, Industry and Energy will inject 18.2 billion won ($15.1 million) by 2022 to establish drone logistics platforms for rural and mountainous areas and test the project’s economic feasibility.

The drone delivery service, currently available at four gas stations, will be expanded to 22 gas stations by 2022, according to the Trade Ministry.

Drones used for the project have been given flight approval by the Jeju Self-Governing Province.

“GS Caltex will continue developing various retail services including drone deliveries by utilizing gas stations,” Hur said.

By Kim Byung-wook (kbw@heraldcorp.com)