What the business is
Coupang is Korea's largest e-commerce company, known for its Rocket Delivery logistics.
The bet
That Coupang's ultrafast, store-adjacent delivery model could transplant into Tokyo's key districts
How it started
Coupang launched its Japanese pilot in June 2021, delivering food and household goods during the pandemic delivery boom.
What happened
Two years on, demand had cooled. Professor Suh Yong-gu said ultrafast services appeared to have failed to appeal to Japanese consumers — the 'Satori generation' of young people is wary of new services — and that Japan's konbini, almost three times bigger than Korea's, already serve most daily needs, leaving little demand for delivery. Baemin had withdrawn from Japan in 2021 after five months, selling its Japanese unit to foodpanda.
How it ended up
The pilot ended on 21 March 2023. Coupang refocused on the domestic Korean market — seen heading toward 700 trillion won ($530B) by 2025, where its share was 'not big enough' — and on Taiwan, where Korean-made products are popular and online shopping demand is fast growing.
What has to be true
A two-year pilot that never expanded beyond two Tokyo wards answered the expansion question empirically: trial results, not ambition, drove the exit.
Japan's konbini network is a delivery substitute baked into daily life, compressing the addressable need for ultrafast e-commerce.
With Korea's own market still under-penetrated and Taiwan adjacent in taste, redeploying the capital had a higher expected return than persisting in Japan.
What can be applied
Delivery-market structure beats delivery technology: where convenience stores already solve daily top-ups and consumer culture dampens new-service adoption, speed alone doesn't create a market.
Aftermath
Coupang folded Japan into its Korea-and-Taiwan growth focus from March 2023; the company declined to elaborate further on its Japan business.
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The sources
- Coupang withdraws from Japan to focus on Korea, Taiwan koreaherald.com