Coupang is repeatedly referred to as the ‘X of Korea’, whether it be e-commerce or any number of other offerings, and now it’s expanding.
If you’ve heard of Coupang, you’re probably accustomed to hearing it described as the Amazon/Instacart/DoorDash/Shopify of South Korea.
But all hype aside, its recent international expansion does make for exciting times.
“We’re going to Taiwan”
For those of you not in the know, Coupang is primarily an e-commerce platform that operates in South Korea. Its unique selling point is the ultra-fast, Amazon Prime-esque Rocket Delivery network it operates, which can deliver 99.6% of its orders to 70% of South Korea’s citizens within 24 hours.
Coupang received all the plaudits last month when it made its first international expansion into Japan, its stock jumping in the following weeks. What has flown significantly under the radar in comparison is the company’s test launch in Taiwan yesterday.
Now, while the Taiwan move is neither pivotal nor groundbreaking, it does showcase the company’s potential, as well as attention to detail. It is testing its abilities in the country, delivering food and grocery items directly on the same day, without relying on couriers such as Uber Eats, etc.
Now, in this densely populated part of the world, it is much easier to ensure 24-hour delivery, on account of everyone living so close to everything. Coupang is clearly flexing its muscles and seeing how it can operate outside of its home market, but using its own learnings. First with Japan, and now with Taiwan.
It also has the experience of operating in such densely populated regions — Seoul is the fifth most densely populated city in the world — and therefore knows how to optimize customer experience and its business model across many similar sized Asian markets.
So this Taiwan venture and any subsequent expansions are definitely worth keeping an eye on for investors. If you want an expert and in-depth analysis, check out our Insight for MyWallSt subscribers.
And that’s just its domestic market!
Whatever else happens internationally, there’s definitely plenty of business for Coupang in its home market of Korea.
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