Redefining Urban Space Through Logistics

Episode 1: Logistics Is Swallowing the City – From "Routes" to "Flows"

For decades, cities were designed around "routes." Paths for people and vehicles, streets linking homes and shops, and daily rhythms of commuting and school runs formed the arteries of urban life. But today's urban transformation is no longer a linear extension of that past. A new era has arrived—one defined not by routes, but by "flows."

Food, goods, and services now move in real time, while people stay still. The city is no longer just for people. Logistics now flows through its veins.

How Logistics Is Reshaping Urban Landscapes

Cityscapes are changing rapidly. The first signs are seen in alleys, intersections, and apartment entrances. Packages stacked at dawn, fleets of scooters and electric bikes, and autonomous delivery robots all indicate that delivery is no longer auxiliary—it's central to life.

South Korea's delivery market reflects this shift in numbers. In 2020, the nationwide delivery market surged to KRW 17.3 trillion, a more than fivefold increase from 2019. According to KDI Economic Information Center, during the COVID-19 pandemic, delivery app usage rose by 29% in volume and 35% in value. This isn't just market growth—it's a fundamental reconfiguration of how urban space is used.

In Seoul, dark stores like Baemin B Mart and Coupang Eats Mart have proliferated, reinforcing last-mile logistics at key hubs. Coupang’s Rocket Fresh expanded from the capital region to nearly nationwide coverage, while Oasis has broadened its next-morning delivery service to major cities across the country.

Apartment complexes are adapting too. Previously, delivery vehicles freely accessed surface roads. But newer, pedestrian-focused designs and height restrictions now block such access. As a result, new logistics features are emerging—robot deliveries, smart lockers, and integrated delivery systems.

Major developers and agencies like LH and SH have updated design guidelines to include delivery vehicle access planning, elevator API integration, and security system coordination to support automated logistics infrastructure.

Urban Restructuring in Numbers

Urban space reconfiguration is no longer theoretical. The following figures show how logistics has reshaped cities since 2020:

■ Verified Indicators of Change:

-. Delivery market size: KRW 2.7 trillion (2019) → KRW 17.3 trillion (2020) (535% increase)

-. Delivery app usage during COVID-19: +29% (volume), +35% (value)

-. Increased concentration of demand in areas with high proportions of single-person households and residents in their 30s

Traffic patterns have shifted dramatically. Areas with high delivery demand now face a surge in two-wheeled vehicle traffic, challenging traditional traffic systems. This is more than speed—it's about space being reengineered.

Platforms Embedded in Everyday Spaces

The urban lens has shifted from "livability" to "deliverability." Critical factors now include whether an apartment allows on-site picking, underground vehicle access, and temporary storage for parcels.

Baemin B Mart, initially built in new commercial spaces, has since evolved to design first-floor picking zones or even reorganize entire layouts for logistics efficiency. In 2024, it reported its first profit, reflecting the value of logistics-driven design.

Oasis deploys transfer centers (TCs) across the capital region to optimize fixed delivery routes. It also coordinates elevator integration and secure building access with property managers. Coupang, meanwhile, unifies its fulfillment network (CFCs and FCs) and delivery fleet to operate a fully integrated last-mile system under its C2H (Consumer-to-Home) model.

To these platforms, space isn’t just used—it’s controlled. Cities are increasingly mapped by logistics paths, data flows, and operational throughput.

Designing for Logistics-First Cities

Seoul City and the Ministry of Land, Infrastructure and Transport now identify logistics hubs as a priority in their smart city strategies. The government has effectively acknowledged that cities are being reshaped around logistics.

Seoul's Urban Planning Bureau is preparing policies to convert underutilized lots, underground spaces, and storefronts into micro-fulfillment hubs. Cities like Sejong and Gimpo are integrating logistics infrastructure directly into residential complex designs.

In one example, Seoul’s Jung-gu district is planning a small-scale multifunctional logistics hub near Toegye-ro, integrated with a delivery robot testbed. Sejong City is piloting a smart collection system that merges waste management with logistics infrastructure—indicating that even disposal routes are becoming part of the logistics grid.

Some local governments are also working with startups to trial smart lockers, reusable packaging stations, and carbon-neutral delivery hubs as part of multifunctional logistics facilities.

The Human Experience of Change

"Delivery is fast, but waiting for the elevator takes longer."
— Resident, Gangseo-gu, Seoul

"There’s too much packaging waste. The trash rooms are overwhelmed. We need a collection system for packaging."
— Apartment Manager, Mapo-gu, Seoul

"From a platform perspective, complex layout matters: picking locations, elevator positions, vehicle size access, and entry protocols all affect logistics efficiency."
— Logistics Platform Operator

Delivery speeds have increased, but so has spatial fatigue. Residents appreciate speed but feel the hidden pressure of structural inefficiencies. Platforms respond with precision—analyzing and redesigning spaces for maximum operational control. Cities are no longer static stages, but dynamic infrastructures that adapt to logistics flows.

Future Scenarios: Cities Designed for Logistics

Projecting current trends forward, cities will fundamentally change. Residential complexes will be designed not primarily for people, but for optimized logistics flows.

Elevators will accommodate both people and parcels. Electric delivery vehicles and drone pads will occupy parking garages. Return boxes will be built into living rooms. Refrigerated storage rooms will be standard in lobbies. Entrances will open and close based on predictive delivery schedules.

These designs won’t prioritize residential convenience—they will ensure supply chain stability. The resident becomes a node in a larger delivery network.

Coupang builds fulfillment centers on city outskirts and positions dark stores near urban cores. Oasis runs vertically integrated cold chains, from private-label meals to morning delivery. These setups reflect a design logic driven by supply, not shelter.

The line between architect and supply chain engineer is fading. Aesthetics give way to data-driven spatial logic. Cities are becoming platforms, optimized for flow.

Next Episode Preview: "The Urban Designer Has Changed"

Who designs cities today? Once, it was urban planners and construction firms. Now, platforms lead. They plan delivery paths, predict consumer patterns, and retrofit apartment layouts for seamless logistics.

Next, we ask: Why must construction firms think like platforms?

We explore how builders can evolve from space providers to flow architects.

[Series: Reshaping Logistics, Space, and Everyday Life]
Prologue: "Before Amazon Designs Our Apartment"
Episode 1: "Logistics Is Swallowing the City – From 'Routes' to 'Flows'"
Episode 2: "The Urban Designer Has Changed – Construction Meets Platform"
Episode 3: "What Should Builders Design? – The Platform Counterpart"

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This is part of the STREAMLINE: Beyond Logistics Playbook by BEYONDX series.