Coupang prepares to launch service in Japan
Coupang's delivery vehicles at a parking lot in Seoul on April 25. Yonhap
By Kim Jae-heun
Coupang launched its first delivery service in Japan Thursday, marking the first step for Korea's largest online retailer to take on the ecommerce market in the neighboring country, which is the world's fourth largest.
The launch came months after Softbank Chairman Masayoshi Son revealed his plan to reporters in March to bring Coupang to Japan.
Currently, Coupang is delivering products on a trial basis only in Tokyo's Shinagawa District and customers are able to place orders for food and other daily necessity items through a mobile application.
Coupang confirmed that it started offering delivery service in Japan.
Coupang is only making short-distance deliveries in Japan for now. It set up a small distribution center in Shinagawa and all of the items are go out for delivery from there. Also, the online retailer hired delivery workers through a local agency unlike in Korea, where it employees drivers directly.
There is no overnight delivery service in Japan and Coupang said it wants to apply customized delivery methods in the neighboring country rather than introducing the overnight “Rocket Delivery” service available in Korea.
With the continued rapid spread of COVID-19 across the country, Japan is also witnessing huge demand for online delivery services.
Coupang chose Shinagawa for trial deliveries, because there are many middle-class families living in that district of Tokyo. Coupang's attempt to offer its service in Japan is seen by many as part of its efforts to find “new growth engines” following its February New York listing.
“It is hard to say that Coupang has officially launched its service in Japan. It is currently looking for the right market to enter and Japan is one of them,” an industry source said.
Coupang has been reluctant to speak about plans to expand its business overseas. However, many international investors pointed out that the Korea market alone is too small for Coupang to grow.
As an additional move, Coupang recently established an overseas corporation in Singapore and commenced hiring new staff there. The online retailer plans to build a base in Singapore to advance into the Southeast Asian market. “Singapore, the city state, has a highly-concentrated population like the capital of South Korea. Coupang's overnight delivery service does make sense on multiple fronts,” an industry source said.