2023.11.10
Coupang reports record $6.18 billion in Q3 sales powered by Rocket delivery
By
Lee Min-hyung, The Korea Times - Coupang saw sales increase to an all-time high
in the third quarter of this year thanks to the gradual growth of its flagship
Rocket Delivery service here and abroad, the e-commerce giant said on
Wednesday.
In
a regulatory filing, the company reported sales of $6.18 billion between July
and September, up 18 percent from a year ago. Operating profit also reached
$87.5 million, up 13 percent over the same period.
The
solid earnings were driven by the overall growth of its core businesses, such
as Rocket Delivery, Rocket Fresh, Marketplace and Rocket Growth, the
Nasdaq-listed e-commerce firm said. Their combined sales reached 7.81 trillion
won, jumping 18 percent during the same period.
The
firm’s operating profit, however, fell 40.9 percent from the previous quarter,
as Coupang expanded investments in Taiwan after launching the ultra-fast Rocket
Delivery service there. In October last year, Coupang made inroads into the
Taiwanese market, and launched its flagship delivery service which has
displayed faster growth there than in Korea.
Coupang
founder Kim Bom-suk, better known as his English name Bom Kim, reiterated his
confidence in the growth potential of the market.
“We
are increasingly convinced over the longer-term growth potential of Taiwan,” he
told investors during a conference call. “Our Rocket Delivery business there is
on track to report faster growth than Korea in the first year after our debut
there. If the ongoing momentum continues, Coupang will gain the title of the
most-downloaded app in Taiwan in 2023.”
According
to Kim, Coupang helped more than 12,000 small- and medium-sized enterprises
(SMEs) in Korea export their products to Taiwan in just one year.
The
e-commerce company is also forecast to achieve its first-ever annual surplus
this year, even at a time of shrinking consumption and lingering inflationary
pressure, Coupand said, citing relevant data.
As
of the third quarter, the number of Coupang’s active customers surpassed 20
million, up 13.5 percent from the previous year. Active customers refer to
those who purchase goods through the platform at least once in a quarter.
Average sales for each active user inched up 6.7 percent to $303 during the
same period.
Coupang
also expected its Coupang Eats food delivery service to extend gradual growth.
“Only
20 percent out of our Coupang Wow membership customers uses the service, so it
still has significant growth opportunities down the road,” Kim said. “The
market share of Coupang Eats here will reach close to 20 percent by the end of
this year.”
Source: https://www.koreatimes.co.kr/www/tech/2023/11/419_362802.html