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 

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