New Delhi:- Coupang, an e-commerce company based in Seattle, said it will increase investment in Taiwan after four consecutive profitable quarters. Coupang was the most downloaded app in the second quarter of this year in Taiwan, the company said in an earnings call on Wednesday.
“Taiwan is another investment that far exceeded our expectations,” Coupang general manager Bom Kim said on his conference call. “We have always believed that the transformative business experience we have created in Korea can delight customers around the world. We see this happening in Taiwan.
The company's CEO said Coupang's next-day delivery service, Rocket Delivery, has grown faster in Taiwan in the ten months since its launch than Rocket Delivery in South Korea in the first ten months. first. Coupang has spent about $400 million this year investing in Taiwan, and its growing supply unit runs non-core businesses, such as Coupang Play (video streaming), Coupang Eats (food delivery) and Coupang Pay (fintech).
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The move comes months after Coupang shut down operations in Japan in March and dismissed rumors that the e-commerce company was planning to enter India in May.
“Our barriers to new initiatives are very high,” Kim said. “We have abandoned investments that do not meet our internal thresholds and deferred countless other investments that rank below our most attractive opportunities. So far, Taiwan is pushing that limit. With this progress, we will invest at a higher level in Taiwan this year.
Coupang's core business, the merchandise business, reported net sales of $5.6 billion for the second quarter of 2023, up 21% from a year ago. The merchandise commerce unit includes the Rocket Delivery marketplace and Coupang, an e-commerce platform that connects buyers and sellers directly. Its growing trading unit generated $156.29 million in revenue in the second quarter of this year, down 2% from a year ago, according to the company's financial statements.
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“Revenue and active customers grew at a faster pace this quarter,” Kim said. "And our emerging commercial services like advertising and Coupang's Fulfillment and Logistics, or FLC, are growing more than twice as fast as our overall business."
Coupang says its active customer base continues to grow, with 19.7 million active users in the second quarter of 2023, up 10% year-over-year. Earlier this year, the US-listed e-commerce company opened its largest distribution center in Daegu, South Korea, with an army of robots working in the logistics center.
The company, backed by SoftBank's Vision Fund, reported net income of $145 million for the second quarter of 2023, up 32% from a loss of $75.4 million in the second quarter of 2022.
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The company hopes its new categories, like fashion and beauty products on its rocket-delivery platform, and discounts on unlimited Coupang Eats for Wow memberships, similar to Amazon.com's Prime, will increase its profitability.
An e-commerce company called Coupang will now ramp up its investment as they made a lot of profit for the fourth consecutive quarter and it was also the most downloaded app in the second quarter.