Coupang is set to invest about 360 billion won in Taiwan as it launches rocket delivery services in the region.
According to local media reports in Taiwan on April 25, including in the Liberty Times, the Department of Investment Review under Taiwan’s Ministry of Economic Affairs has approved Coupang Inc.’s application for an investment of 6.06 billion Taiwanese dollars (US$186 million).
The Taiwan’s Ministry of Economic Affairs had previously approved an investment of 2.48 billion Taiwanese dollars at the end of last year. With the latest approval, Coupang’s cumulative investment in Taiwan has exceeded 8.53 billion Taiwanese dollars.
With the investment approval, there are signs that Coupang’s logistics investment for local Rocket Delivery and other services will expand. In November of last year, just one year after entering Taiwan, Coupang opened its second large-scale fulfillment center. The company plans to open its third fulfillment center in the middle of the first half of this year. It will be a smart logistics center equipped with artificial intelligence-based customer demand forecasting, machine learning, and automation technologies.
According to Taiwanese media, Coupang’s investment amount significantly surpasses the capital of leading e-commerce and TV home shopping company Momo, which stands at 2.2 billion Taiwanese dollars, and major e-commerce company PC Home, which is at 1.44 billion Taiwanese dollars. Coupang is known to be receiving positive responses in Taiwan by implementing fast delivery through its large-scale investments.
Through Coupang’s rocket delivery service from its logistics centers, local customers in Taiwan can receive their orders the next day if they spend over 195 Taiwanese dollars. For Rocket Direct, which involves purchasing from South Korea with local delivery, free shipping via air freight is offered within one to two days for purchases over 690 Taiwanese dollars.
Coupang’s rocket delivery service in Taiwan is gaining popularity for offering lower prices compared to local distributors. Domestic small and medium-sized enterprises manufacturing products such as red ginseng brands, seaweed, snacks, and beverages are being sold their items 40 to 70 percent cheaper compared to local competitors.
