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Coupang, a South Korean e-commerce group backed by SoftBank, reported that even if the Covid-19 pandemic raises its sales to record levels, quarterly losses are expanding.
The company said late Wednesday that although revenue rose 74% to $4.2 billion, its net loss in the first quarter increased 180% year-on-year to $295 million. The loss was slightly lower than analysts expected.
Coupang’s disappointing result is following the online retailer High-profile stock market debut In March of this year, the company’s market value in New York exceeded $80 billion.
The IPO is the largest overseas listing in the United States since the Chinese e-commerce company Alibaba in 2014, which boosted SoftBank’s net profit Reached a record 46 billion U.S. dollars In the most recent fiscal year of the Japan Technology Group.
However, since the glorious IPO, Coupang’s situation has deteriorated.
The group’s valuation once reached 118 billion U.S. dollars, and has now fallen to 62 billion U.S. dollars. A series of deaths Delivery company and warehouse employees.
Coupang attributed the loss to loss of stock compensation, which cost $87 million, as well as increased recruitment and investment. The company has invested heavily in establishing a logistics network consisting of 100 distribution centers in 30 cities, with a fleet of more than 15,000 delivery drivers. Coupang proudly points out that almost 100% of orders are delivered on the same day or the next day.
The company said its active customers, or customers who purchased goods through Coupang at least once during the quarter, increased 21% to 16 million. The organization stated that spending per active customer increased 44% year-on-year to $262.
Founded in 2010, Coupang is the largest participant in the highly competitive e-commerce market in Korea.
The company predicts that by 2024, the market will grow to $206 billion. According to data from research firm Euromonitor, South Korea’s e-commerce sector may grow by 11% this year to reach 116 billion U.S. dollars.
But the company’s growth has been Eight employees died, Including two subcontractors, unions and politicians attributed it to overwork.
Coupang’s other investors, including the venture capital firm Sequoia Capital (Sequoia Capital) and the US asset management firm BlackRock (BlackRock), denied responsibility for the death. The company stated that only one death was related to work.
Coupang’s New York-listed shares fell 2.5% before the results were announced on Wednesday.
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