“Arriving in the pre-dawn hours” — Even Taiwan was surprised... Coupang’s “Rocket Growth” spreads by word of mouth

Coupang, ranked first in domestic e-commerce (electronic commerce) market share, is writing a second Rocket Delivery success story in Taiwan. It has established itself in the market, surpassing 11 million app users just over four years after its local entry. It is targeting the Taiwanese distribution market with the “economies of scale” strategy proven in the domestic market, including large-scale logistics network investments and securing cost-effectiveness through direct purchasing.

According to global traffic statistics site SimilarWeb on the 22nd, Coupang app users in Taiwan were recorded at 11.9 million in July this year. This represented a 14.59% increase from the previous month, setting a “record high.”

Coupang began fully operating Rocket Delivery and Rocket Direct Purchase services in Taiwan starting October 2022, rapidly boosting its market share. App visitors more than doubled from 1.4 million in October 2023 to 3.7 million in January 2025, and continued to record double-digit growth rates every month thereafter. In February this year, it reached 9.6 million, approaching 10 million, and in June, it surpassed the “10 million mark” for the first time with 10.4 million users. Subsequently, the number of users increased by more than 1.5 million within two months.

This serves as proof that Coupang’s delivery competitiveness has been validated in Taiwan as well. According to company analysis, this is the result of high revisit rates among customers who have experienced Rocket Delivery services once, and simultaneous increases in new customer inflow driven by word-of-mouth that “delivery is fast.”

After starting operations at its No. 1 fulfillment logistics center northwest of Taoyuan Airport in 2022, Coupang opened its No. 2 center in November 2023, No. 3 in the first half of 2024, and No. 4 in March this year. It has also built dozens of intermediate logistics facilities in central Taichung and southern Kaohsiung, using northern Taoyuan as a hub. Through this, it has laid the foundation to provide Rocket Delivery services to approximately 70% of the Taiwan region. Recently, it also began introducing “pre-dawn delivery” services in some areas.

Coupang Inc. Chairman Kim Beom-seok stated at last month’s Q2 earnings conference call that “the majority of delivery volume in Taiwan is processed with next-day delivery seven days a week,” adding that “we have directly inherited the technology and process innovations accumulated over more than 10 years in Korea, as well as design, system, operation manuals, and delivery ‘playbooks.’” This means that the success formula of the domestic distribution market has been replicated exactly in Taiwan.

The strategy of tolerating losses for a certain period through bold early-stage investment, known as “planned deficits,” is also identical to that in Korea. Coupang has continued investments of over 500 billion won annually since entering Taiwan. Since last year, it has also expanded the operation of the “Coupang Friends” system, which directly hires local delivery personnel.

Coupang’s influence has grown significantly locally. Cho Gu-rae, a man in his 50s who has lived in the southern Kaohsiung region of Taiwan for 15 years, said, “I can feel that Coupang’s delivery speed has become even faster in southern Taiwan recently,” adding, “It definitely arrives two to three days earlier than competitors Momo and Shopee, and there is a perception that for Korean products, Coupang is cheaper and offers better quality than local distributors.” Zui Chen (45), a Taiwanese person who has used Coupang since June 2023, said, “More people around me are using Coupang,” adding, “I am so satisfied with the speed of the delivery service that I would want to give it 9 out of 10 points.”

Expectations are rising that Coupang can further increase its market share in Taiwan as high-income levels and trend-sensitive age groups have established themselves as the main customer base. According to SimilarWeb, as of June this year, 22.28% of Coupang users were aged 25 to 34, 24.22% were aged 35 to 44, and 20.41% were aged 45 to 54. This means that customers in their 20s to 40s account for more than half.

Forecasts also emerge that Coupang will become a game changer in the local distribution market as it gradually increases its market share. Jung Jun-ho, an Inha University Gyeong Yeong-hak-gwa (Prof.) who taught students in Taiwan for three years starting in 2022, said, “The Taiwanese distribution market is still dominated by offline markets such as large marts and traditional markets, but Coupang’s entry has opened a new chapter in online delivery services,” predicting that “if pre-dawn delivery begins, it has sufficient potential to change the landscape of the distribution market.” He added, “Choosing Taiwan, which has a similar income level to our country and high population density, as the ‘next market’ was a good choice,” analyzing that “if Coupang raises its recognition further than now, the market it can preempt in Taiwan, where platform businesses are weak, will expand further.”

“Is ordering from Coupang in Taiwan as fast as in Korea?” To resolve this doubt, I turned on the Coupang Taiwan application (app) in Hsinchu, Taiwan, which I recently visited. Upon activating the app, various products appeared, ranging from Korean cosmetics brands to daily necessities and food sold in Taiwan. In addition to products familiar from Korea, a wide range of items that local consumers seek for their daily lives was also available. After selecting products, I set the delivery address to the hotel where I was staying.

I barely felt any difference in speed compared to domestic services. When I went down to the hotel lobby around 8 a.m. the next day, the hair serum I had ordered had already arrived. The packaging box bore the same Coupang logo seen in Korea.

Even after going around Hsinchu city, it was not difficult to see Coupang delivery vehicles coming and going. Scenes of delivery workers loading and unloading boxes with the Coupang logo were also often visible. It was a sight of Coupang delivery boxes, familiarly seen in Korea, being delivered mixed among local courier volumes.

Coupang introduced its paid membership Wow Membership in March last year, its third year in Taiwan. Similar to domestic services, it provides free shipping and free return services to Wow members. Non-members receive a free shipping benefit for orders exceeding 490 New Taiwan Dollars (NTD). This is a strategy expecting a “lock-in effect” by increasing market share through fast delivery services while offering differentiated benefits to paid members.

On the Coupang Taiwan app, you can also find dairy products, frozen foods, cup noodles, and more made by local food giants such as Uni-President Enterprises (Tongyi Qiyeh), Wei Chuan (Wei Quan), Guangquan (Guang Quan), and Yimei (Yi Mei). Compared to the domestic market, it is as if major food companies like CJ CheilJedang, Nongshim, and Binggrae have partnered with Coupang. This means that Coupang’s market share has increased locally, and as its direct purchasing scale has grown, it has become an important “big spender” for local manufacturers.

Coupang has simultaneously created a perception of being a platform where popular K-Food in Taiwan can be purchased at prices much lower than local distributors. For example, Nongshim Shin Ramyun costs 120 New Taiwan Dollars (approximately 4,900 won) for five packs when ordered via Coupang Rocket Delivery. At local convenience stores, one pack costs 49 New Taiwan Dollars, making the price for five packs about twice as expensive. It is evaluated that in addition to delivery competitiveness, the supply competitiveness of K-Food products also contributed to the recent significant increase in the number of users in Taiwan.

#‘Brandon,’ an organizing supplies company in its seventh year since founding, saw its performance soar after entering Coupang Taiwan Rocket Delivery in Q2 last year. As of October this year, one year after entry, its sales growth rate in Taiwan reached 70 times (7,000%). It has also recorded annual sales growth rates of 30-40% in the domestic market and achieved annual sales of 10 billion won solely through Coupang. A company official said, “Thanks to Coupang’s logistics network that connects domestic product supply to local sales in Taiwan, barriers to overseas expansion have been significantly lowered,” adding, “We are achieving strong synergy effects by running marketing on our own local mall in Taiwan alongside Coupang sales.”

Rocket Delivery infrastructure, a symbol of Coupang, has become a reliable sponsor helping domestic SME (small and medium-sized enterprise) companies expand overseas. Success stories are emerging one after another where companies record explosive sales growth in the Taiwanese market using Coupang’s “one-stop” system covering logistics, customs clearance, and local delivery as a stepping stone.

Brandon, which pioneered the market by unveiling the industry’s first “volume-reducing compression pouch,” is cited for its hit factors: targeting the niche market concept of anti-theft and volume reduction, which was absent in the local market, given that Taiwanese consumers enjoy travel and have high demand for bag purchases.

‘Shinji Moru,’ a mobile accessory specialist established in 2008, also benefited greatly from Coupang Taiwan Rocket Delivery. It mainly sells smartphone cases, liquid crystal protective films, and attached card storage pouches, recording an 180% sales growth rate compared to the previous year after entering the Taiwanese market in Q2 last year. It is expanding its position in the mobile peripheral market not only in the domestic market but also in Taiwan.

Currently, approximately 10,000 domestic SME (small and medium-sized enterprise) companies are exporting products to Taiwan through Coupang. This accounts for about 30% of domestic consumer goods export SME (small and medium-sized enterprise) companies. For SME (small and medium-sized enterprise) companies lacking manpower and funds, it has become possible to expand sales channels to the global market simply by entering Coupang’s domestic logistics centers, without complex import distribution procedures or establishing overseas subsidiaries.

Taiwan is one of the top five export destinations for Korean SME (small and medium-sized enterprise) companies. With a population of approximately 24 million and a total distribution market size of about 20 trillion won, it is evaluated as a market with great growth potential, as its e-commerce share remains below 20%. In particular, an internet usage rate exceeding 90% and a higher population density than Korea (673 people per square kilometer) are cited as optimal conditions for Coupang’s advanced Rocket Delivery logistics network to exert strong power.

Coupang plans to actively support the overseas expansion of domestic SME (small and medium-sized enterprise) companies in the future. A Coupang official said, “For domestic SME (small and medium-sized enterprise) companies struggling with overseas expansion, the Taiwan business is becoming an excellent alternative for opening new sales channels,” adding, “We will spare no effort in providing logistics and marketing support so that many promising domestic SME (small and medium-sized enterprise) companies can grow together in overseas markets.”