The user repurchase rate exceeds Amazon! Korean e-commerce Coupang's market value has jumped to second place in South Korea

With Coupang's successful listing on the New York Stock Exchange on the 11th, Coupang raised US$4.55 billion (approximately 5.15 trillion won) at a public offering price of US$35 per share (approximately 39,620 won) .

Although Coupang is an e-commerce company from South Korea, it has always been called the "Amazon" of South Korea for its "rocket delivery" (similar to Amazon's Prime service) and its good service attitude.

However, as early as four years ago in 2017, Coupang's user repurchase rate and repurchase amount growth rate had exceeded Amazon's data. In 2017, Coupang's user repurchase rate was 346%, higher than Amazon's 278% repurchase rate.

Coupang’s user repurchase rate compared to other e-commerce companies Image source: Goodwater Capital

In addition to the great efforts Coupang has put into shopping experience and user service, Coupang's huge advantage in logistics is also one of its winning magic weapons!

When Coupang was founded in 2010, facing the lack of major third-party logistics carriers in South Korea similar to UPS or FedEx in the United States , Coupang began to build its own basic logistics facilities . Eventually , it established 100 logistics centers in 30 cities and had more than 15,000 delivery drivers.

Unlike the United States, South Korea's unique geographical location has created a living environment with a very high population density. Coupled with the influence of South Korea's "fast culture", Coupang, which has an excellent logistics infrastructure, has also attracted busy Korean people with its excellent delivery services such as "same-day delivery" or "next-day delivery".

As one of the four Asian tigers, South Korea's extremely high Internet penetration rate and relatively high per capita GDP have enabled Coupang to go further and further in its development.

At the close of trading yesterday, Coupang's stock price had jumped to $49.25, up 40.71% from its public offering price of $35, with a trading volume of 90 million shares.

According to the Chosun Ilbo, Coupang's market value will eventually stabilize at around 88.65 billion US dollars (100 trillion won) . Among Korean companies, its market value has successfully surpassed SK Hynix (market value 99.73 trillion won) and is second only to Samsung Electronics (market value 489.5222 trillion won), becoming the second largest Korean company in terms of market value.

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User repurchase rate