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Coupang

From Wikipedia, the free encyclopedia
"Rocket Delivery" redirects here. For delivery of mail by rocket, see Rocket mail. For the food delivery service in Germany, see Delivery Hero.
For the city in Indonesia, see Kupang.

Coupang, Inc.
Native name
쿠팡
Company typePublic
ISINUS22266T1097
Industry
Founded1 July 2010; 14 years ago (2010-07-01) as Coupang Co., Ltd.
FounderBom Kim
HeadquartersSeattle, Washington, United States.
Area served
  • South Korea
  • Taiwan
Key people
Bom Kim (CEO)
Services
  • Rocket Delivery (e-commerce)
  • Rocket Fresh (grocery delivery)
  • Coupang Eats (restaurant delivery)
  • Coupang Play (streaming service)
  • Coupang Pay (digital payments)
RevenueIncrease US$24.4 billion (2023)
Increase US$473 million (2023)
Increase US$1.36 billion (2023)
Total assetsIncrease US$13.3 billion (2023)
Total equityIncrease US$4.09 billion (2023)
Owners
Number of employees
c. 78,000 (2023)
SubsidiariesCoupang Co., Ltd.
Websitecoupang.com
Footnotes / references
[1][2][3]
Coupang delivery truck in Seoul, 2017.

Coupang, Inc. (Korean: 쿠팡) is a US-based e-commerce company headquartered in Seattle, Washington and incorporated under the Delaware General Corporation Law.[4][5] Founded in 2010 by Bom Kim, the company sells apparel, electronics, toys, food products and other products marketed in South Korea.[6]

The company expanded into video streaming distribution with the launch of its Coupang Play service. Coupang is often referred to as the "Amazon of South Korea", due to its position and corporate size in the South Korean online market.[7]

Overview

[edit]

The first marketplace and largest online retailer in South Korea,[8] Coupang's annual revenue as of 2021 is US$18.4 billion.[9][10] The company's Rocket Delivery network provides same-day or next-day delivery of more than five million unique items.[11] Coupang claims that 99.6 percent of its orders are delivered within 24 hours.[12] 70% of Korean citizens live within 10 minutes of a Coupang logistic center.[13]

Coupang was headquartered in Songpa District, Seoul, South Korea until 2022 when it relocated to Seattle in the US.[14] Coupang also has offices in Beijing, Shanghai, Los Angeles and Mountain View.[15] It is incorporated under the Delaware General Corporation Law[4] since 2010.[14][16]

Coupang was founded by Bom Kim in 2010. A student of Harvard University, Kim started to study for his MBA at Harvard Business School but dropped out six months into the program.[17]

Kim registered Coupang originally as a limited liability company in Delaware State,[14] allowing to access US funding. In November 2018, Coupang received a US$2 billion investment from SoftBank.[18] Other major investors in Coupang include BlackRock and Fidelity.[19]

The company has grown during the COVID-19 pandemic with increased demand for online shopping.[20] In July 2020, Coupang acquired the assets of Singaporean streaming service HOOQ to form the nucleus of its streaming service named Coupang Play.[21]

Coupang had its IPO on the New York Stock Exchange on 11 March 2021.[20]

On 4 June 2021, Coupang announced that it had started trial operations in Japan.[22] However it pulled out of the country less than 2 years later due to low growth potential amid the dominance of Amazon and local player Rakuten.[23] On 8 July 2021, the company launched in Taiwan.[24]

On 18 December 2023, Coupang announced it would be acquiring online retailer Farfetch in a deal that would give Farfetch access to $500 million worth of capital. The deal comes as Farfetch faced potential administration, with previous talks with Swiss luxury group Richemont being terminated.[25]

Financials

[edit]

The company announced in 2020 that its annual revenue in 2019 increased by 64.2 percent over the previous year, and totaled 7.15 trillion won ($5.9 billion).[26] Its operating loss in 2019 dropped from 1.13 trillion won to 720.5 billion won, declining 36 percent.[26] The gains were attributed to expanded fast delivery service across the nation, including the overnight Rocket Delivery; sales of home appliances and fresh food; and a steady increase in customers.[26] The company had created 2,500 jobs in 2014 and 30,000 in 2019; labor costs increased correspondingly from 100 billion won in 2014 to 1.4 trillion won in 2019.[26] In 2020, the COVID pandemic accelerated the company's sales.

According to SoftBank, Coupang's estimated value is $9 billion, and it has earned $3.4 billion venture funding to date.[27] SoftBank funded the company with $2 billion in 2018 and $1 billion in 2015.[27]

Following Coupang's IPO in March 2021, SoftBank owns one-third of the company, Greenoaks Capital has a 16.6% stake, Maverick Holdings 6.4%, and Rose Park Advisors 5.1%.[28] BlackRock holds a 2.1% stake and CEO Bom Suk Kim owns approximately 10.2%.[28]

Its sales increased 74% in the first quarter of 2021 with $4.26 billion recorded, compared to the first quarter of 2020. Its year-over-year net loss increased 180% to $295 million during that same period.[29]

Years[30] In US$ Millions
Revenue Gross income Net income
2018 4,054 189 −1,098
2019 6,273 1,033 −699
2020 11,967 1,986 −463
2021 18,406 3,109 −1,543
2022 20,583 4,710 −92

Services

[edit]

Rocket Delivery

[edit]

Coupang is known for its fast delivery system[31]. Rocket Delivery is a signature service whereby items ordered before midnight will be delivered overnight by Coupang's own delivery personnel.[32] In July 2020, Coupang's Rocket Delivery staff was renamed from Coupangman to Coupangfriend (쿠팡친구), since the number of female delivery workers has increased, and to imply friendly service.[33]

Rocket Delivery service is free for the Coupang Rocket membership subscribers, for whom delivery is free for all Rocket Delivery tagged products.[34] Rocket Delivery is offered to non-subscribers if they purchase more than KRW4,990. It is estimated that 32% of Coupang users are subscribed.[34] 99.3% of Coupang Rocket Delivery orders are delivered within one day.[35]

Rocket Delivery service is possible via 200 warehouses that are approximately 20 million sq. ft across the country.[36] Coupang's logistic centers store approximately 5.3 million types of products and they are stored by an efficient storage system called Random Stow Algorithm.[37] About 1.7 million Rocket Delivery products are sent out from the logistic centers on a daily basis.[37]

Rocket Wow

[edit]
Coupang Rocket Wow Logo

Rocket Wow, a paid subscription service, similar to Amazon Prime, costs users KRW 2,900 per month. On the 30th of Dec 2021, Coupang adjusted the membership fee to KRW 4,990 per month. The increased subscription service has applied to new subscribers.[38]

The features of Rocket Wow are:[39]

  • Free delivery for entire Rocket Delivery tagged products
  • Free return within 30 days
  • Discounts on Rocket Wow tagged products
  • One-day delivery
  • Receiving Rocket Fresh products in the morning
  • Use of Coupang Play
Coupang Rocket Fresh Eco Bag

Rocket Fresh

[edit]

Rocket Fresh is a fresh-food delivery service. Similar to Rocket Delivery, Rocket Fresh delivers fresh foods overnight. Users can receive the food by 7am if they order before midnight.[40] The service covers up to 8,500 kinds of foods.[41]

When Rocket Wow subscribers are ordering Rocket Fresh, they can choose the delivery option of Rocket Fresh Eco, which is an option to deliver the foods inside a reusable fresh eco-bag instead of a paper box. The bag preserves the foods in a fresh condition, and is re-collected in the customer's next delivery.[42]

Rocket Direct Purchasing of foreign goods

[edit]

Users can purchase foreign goods through Coupang. Rocket Direct Purchasing allows foreign goods to be delivered within 3 days.[32]

Coupang Eats

[edit]

Coupang Eats is a food-delivery service like Uber Eats. Coupang users can order food from restaurants, with delivery by Coupang[43] which can be tracked in real time. According to the "Delivery Service Trend Report 2021" released by market research company Open Survey, delivery-service app usage was topped by Baemin (88.6%), Yogiyo (68.2%), and Coupang Eats (34.7%). Compared to the previous year, Baemin rose 8.9 percent, Yogiyo fell 0.1 percent and Coupang Eats rose 28.6 percent.[44] Coupang Eats' growth year-on-year was also noticeable in the recognition survey of each app. Baemin increased 2.4 percentage points from 93.4 percent last year to 95.8 percent this year, Yogiyo remained 90 percent, and Coupang Eats jumped 49.1 percentage points from 23.3 percent to 72.4 percent. Baedaltong fell from 62.7 percent to 55.5 percent.[44] Coupang Eats topped the list with 74 percent for satisfaction with delivery apps.[44]

Coupang Flex

[edit]

Coupang Flex is an outsourcing service that provides temporary employment to anyone over 18 years old.[45] People can choose the date they wish to work and their main work is delivery. Those who have cars can pick up the packages from Coupang's logistic centers and deliver by themselves. Those who does not have cars assist the Coupang man. Coupang flex users are paid KRW 800 per package during the day and KRW1200 per package during the night.[46] On average, they tend to deliver 50 to 60 packages per day.[45]

Coupang Play

[edit]
Main article: Coupang Play

Coupang Play is a South Korean subscription-based video streaming service launched by Coupang in December 2020.[47]

Coupang Pay

[edit]

Coupang Pay is a digital payments service that enables customers to make easy payments. In mid 2020, the company spun off Coupang Pay as a separate fintech subsidiary.[48] By the end of 2020, Coupang Pay was the second most widely used pay system in Korea, with settlement turnover of KRW 25 trillion.[49]

Farfetch

[edit]

Farfetch is a marketplace for the luxury fashion industry. The Farfetch connects customers in over 190 countries and territories with items from more than 50 countries and over 1,400 of the world's brands, boutiques, and department stores.[50] Farfetch was acquired by Coupang in January 2024.[51]

Coupang Taiwan

[edit]

In October 2022, Coupang launched in Taiwan introducing its overnight shipping Rocket Delivery and Rocket Overseas direct overseas purchase.[52] Through Rocket Delivery, customers in Taiwan can order daily necessities and groceries for delivery the following day. If the ordered products come to NT$490 or more, they are delivered free of charge. In addition to the Rocket Delivery service within Taiwan, Coupang has also launched a Rocket Overseas service, allowing Taiwanese consumers to directly purchase goods from the United States and Korea, with free delivery of total purchase of NT$690 ore more.[53]

Coupang became the most downloaded app in the second quarter of 2023 in Taiwan.[54] In November 2023, Coupang launched its second logistics center with the third logistics center expected to be in operation in 2024.[55]

Controversy

[edit]

Worker wellbeing

[edit]

Coupang has been involved in complaints by activists and families of workers who allegedly died from overwork. In April 2021 Kwon Young-gook, a lawyer and the co-chairman at the Committee for Coupang Workers' Human Rights and Health, said "Seven Coupang employees and two subcontractors have died of cardiovascular disorders, such as heart attack, for the past year. ... Out of the nine deaths, five are connected to overnight work as they passed away during or after night duty."[56][57] According to statistics published in the Korea Economic Daily, Coupang had recorded no work-accident deaths since its launch in 2011, as of the end of 2020.[58]

In April 2021, the company introduced Coupang Care, a system that allows employees to take paid breaks and receive health care coaching.[58]

Item Winner system

[edit]

There is a debate over Coupang's Item Winner system, which selects the cheapest product among the same products as the sole seller. There is criticism that sellers offering items for as low as one won can monopolize the market. According to Coupang's terms and conditions, this right is delegated to Coupang as soon as the product's image and trademark are posted. In the process, problems can arise because sellers can use other sellers' images, via Coupang's copyright-transfer agreements. In May 2021, the situation was reported to be under review by the Fair Trade Commission.[59]

References

[edit]
  1. ^ "Coupang, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 28 February 2024.
  2. ^ "Statement of acquisition of beneficial ownership by individuals (SoftBank)". U.S. Securities and Exchange Commission. 14 February 2023.
  3. ^ "Statement of acquisition of beneficial ownership by individuals (Bon Kim)". U.S. Securities and Exchange Commission. 14 February 2023.
  4. ^ a b U.S. Securities and Exchange Commission (7 August 2024). "CURRENT REPORT". U.S. Securities and Exchange Commission. Archived from the original on 22 October 2024. Retrieved 22 October 2024.
  5. ^ "U.S. Department of State Partners with Coupang to Support Educational and Cultural Programs". United States Department of State. Retrieved 22 October 2024.
  6. ^ 쿠팡 판매자센터 로그인 및 판매자 등록 방법 Archived (Date missing) at donbat.com (Error: unknown archive URL) 돈밭닷컴 2021년 5월 18일
  7. ^ "Coupang—The Amazon Of South Korea—Just Became The Largest Foreign IPO On Wall Street Since Alibaba. Here's What You Need To Know". Forbes. 11 March 2021. Retrieved 28 April 2021.
  8. ^ Palmer, Annie (16 June 2020). "Coupang, a SoftBank-backed start-up, is crushing Amazon to become South Korea's biggest online retailer". CNBC. Archived from the original on 8 October 2020. Retrieved 8 October 2020.
  9. ^ Chung, Joo-won (3 March 2022). "Coupang closes 2021 with record sales, operating loss". Yonhap News Agency. Retrieved 25 October 2022.
  10. ^ Hosokawa, Kotaro (4 March 2022). "Coupang posts record loss as expanding rapid delivery network". Nikkei Asia. Retrieved 25 October 2022.
  11. ^ Cho, Hyee-Su (15 April 2019). "Coupang posts 65% on-year growth in revenue". The Korea Herald. Archived from the original on 15 April 2019. Retrieved 8 September 2019.
  12. ^ Dreyfuss, Joel (2 April 2018). "The $5 billion South Korean start-up that's an Amazon killer". CNBC. Archived from the original on 26 July 2019. Retrieved 9 September 2019.
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  14. ^ a b c Gordon, Nicholas (5 June 2023). "How the 'Amazon of Asia,' founded by a Harvard Business School dropout, landed on the Fortune 500 for the first time". Fortune. Archived from the original on 11 June 2023.
  15. ^ "Korean e-commerce unicorn Coupang hires Walmart's former global chief compliance officer". TechCrunch. 14 March 2019. Retrieved 8 September 2019.
  16. ^ U.S. Department of State Partners with Coupang to Support Educational and Cultural Programs and U.S. Foreign Policy Goals in the Indo-Pacific Region《[1]》, Checked October 4, 2024.
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  19. ^ "Investors Continue to Back Coupang Despite Operating Losses". Business Korea. 15 May 2018. Archived from the original on 3 December 2019. Retrieved 9 September 2019.
  20. ^ a b Toh, Michelle. "Coupang, the Amazon of South Korea, raises $4.6 billion in US IPO". CNN. Retrieved 17 March 2021.
  21. ^ "SoftBank-Backed Coupang Buys Hooq Assets to Take on Netflix". Bloomberg. 9 July 2020. Archived from the original on 10 July 2020. Retrieved 14 July 2020.
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  25. ^ Faithfull, Mark. "Farfetch $500m Lifeline As Coupang Swoops To Buy Online Retailer". Forbes. Retrieved 18 December 2023.
  26. ^ a b c d "Coupang narrows operating loss by 36% in 2019 on 64% jump in sales". Pulse News. Retrieved 22 April 2021.
  27. ^ a b Russell, Jon (20 November 2018). "Korean e-commerce firm Coupang raises $2 billion from SoftBank's Vision Fund". TechCrunch. Retrieved 23 October 2024.
  28. ^ a b Savitz, Eric J. "Korea's Coupang Opens for Trading at $63.50. It's Now Worth $114 Billion". Barron's. Retrieved 22 April 2021.
  29. ^ 여전히 불안한 쿠팡. Maeil Economy (in Korean). 14 May 2021. Retrieved 16 May 2021.
  30. ^ "CPNG | Coupang Inc. Annual Income Statement". WSJ. Retrieved 22 April 2021.
  31. ^ Waters, Michael (17 February 2021). "What to know about Coupang, the South Korean Amazon that is about to go public". Modern Retail. Retrieved 14 November 2024.
  32. ^ a b "How to use Coupang". Forinus (in Korean). Archived from the original on 24 April 2021. Retrieved 24 April 2021.
  33. ^ Park, Ah-ram (28 July 2020). 쿠팡, 배송직원 명칭 '쿠팡맨→쿠팡친구'로 변경. Asia Today (in Korean). Archived from the original on 4 May 2021. Retrieved 4 May 2021.
  34. ^ a b "Coupang is opening Rocket Delivery Benefit for Free for All". 2 April 2021. Archived from the original on 24 April 2021. Retrieved 24 April 2021.
  35. ^ Smith, Craig (8 September 2019). "Interesting Coupang Statistics and Facts | By the Numbers". DMR. Retrieved 24 April 2021.
  36. ^ Palmer, Annie (16 June 2020). "Coupang, a SoftBank-backed start-up, is crushing Amazon to become South Korea's biggest online retailer". CNBC. Retrieved 24 April 2021.
  37. ^ a b "Coupang leads delivery service in South Korea". Retail in Asia. 28 June 2019. Retrieved 24 April 2021.
  38. ^ 와우 멤버십 구독료 4,990원…3년 만에 인상한 쿠팡. The Seoul Economic Daily [ko] (in Korean). 29 December 2021. Retrieved 17 January 2022.
  39. ^ 쿠팡-로켓와우-월회비와-혜택사용후기. Archived from the original on 25 April 2021.
  40. ^ Yeo, Jun-suk (27 March 2019). "Coupang's new growth engine: early-morning deliveries". The Korea Herald. Retrieved 25 April 2021.
  41. ^ Nam, Hyun-woo (1 May 2020). "Coupang launches same-day delivery service for fresh food". The Korea Times. Retrieved 25 April 2021.
  42. ^ 새벽배송에 보랭백 선보인 쿠팡, 반납하려면 무조건 재주문?. 6 May 2020. Archived from the original on 7 May 2020.
  43. ^ "Korea's leading e-retailer Coupang launches food delivery service". Pulse News (in Korean). Retrieved 25 April 2021.
  44. ^ a b c Choi, Tae-bum (4 May 2021). 배달앱 만족도 1위는 '배민' 아닌 '쿠팡이츠'…비결은 빠른배달. Money Today [ko] (in Korean). Retrieved 16 May 2021.
  45. ^ a b "Coupang launches new service 'Coupang Flex'". The Investor. Retrieved 25 April 2021.
  46. ^ 쿠팡플렉스 후기. 6 January 2021. Archived from the original on 25 April 2021.
  47. ^ "E-commerce giant Coupang launches video streaming service". Yonhap News Agency. 24 December 2020. Retrieved 21 April 2021.
  48. ^ "Coupang spins off fintech business". Korea Herald. 1 April 2020. Retrieved 25 October 2022.
  49. ^ Lee, Sae-ha; Lee, Eun-joo (14 April 2021). "Naver, Coupang, Kakao with command over digital pay loom large over fintech". Pulse News. Retrieved 25 October 2022.
  50. ^ Fresen, Natalie (29 June 2023). "FARFETCH report says luxury shoppers now more conscious | Retail Bulletin". Retail Bulletin | Daily UK Retail News. Retrieved 25 October 2024.
  51. ^ Warmoth, Brian (2 February 2024). "Coupang's $500 million Farfetch acquisition is complete, despite investor pushback". Digital Commerce 360. Retrieved 25 October 2024.
  52. ^ "S Korean e-retailer Coupang launches service in Taiwan - Taipei Times". www.taipeitimes.com. 28 April 2023. Retrieved 25 October 2024.
  53. ^ "Coupang launches ultra-fast Rocket Delivery service in Taiwan". The Korea Economic Daily. Retrieved 25 October 2024.
  54. ^ Park, Kate (9 August 2023). "Coupang to ramp up investment in Taiwan after four quarters of profits". TechCrunch. Retrieved 25 October 2024.
  55. ^ "E-commerce company Coupang to expand operations in Taiwan | Taiwan News | Apr. 26, 2024 15:50". taiwannews.com.tw. 26 April 2024. Retrieved 25 October 2024.
  56. ^ "Feature: S.Korea's Coupang under criticism for deaths of overworked couriers, warehouse workers". Retrieved 11 May 2021.
  57. ^ "S.Korea's Coupang under criticism for deaths of overworked couriers, warehouse workers". 23 April 2021. Retrieved 11 May 2021.
  58. ^ a b Dong-hwi, Park (19 August 2021). 화장실도 못 화장실도 못 가게 한다고?…누가 쿠팡에 돌을 던지나. Korea Economic Daily (in Korean). Retrieved 10 November 2021.
  59. ^ "Coupang Itemwinner "Winner, consumer deception?" ... Fair Trade Commission reviews".
[edit]
Wikimedia Commons has media related to Coupang.
  • Official website
  • Business data for Coupang, Inc.:
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