Summary:
- Coupang (CPNG:US) reported $7.9 billion in revenue for Q3 2024, marking a 27% increase year-over-year.
- Core Product Commerce segment revenue grew by 16%, while Developing Offerings segment showed a 347% surge.
- Active customer base rose to 22.5 million, an 11% increase from Q3 2023.
- Revenue per customer climbed by 4% year-over-year to $307 (or $318 when adjusted for currency effects).
- Coupang Eats’ market share expansion is evidenced by higher customer retention and positive cross-service usage.
Coupang’s Revenue Growth in Q3
In Q3 2024, Coupang (CPNG:US) continued its upward trajectory by achieving $7.9 billion in revenue, a 27% year-over-year increase. This growth was primarily driven by its Product Commerce segment, which includes Rocket Delivery, Rocket Fresh, Marketplace, and Rocket Growth. This core segment contributed $6.9 billion to total revenue, up 16% from the previous year. Coupang’s Developing Offerings operations, including Taiwan, Coupang Eats, Farfetch, and Coupang Play, demonstrated remarkable growth, generating $975 million—a 347% increase over last year. A key metric analyzed by Aicel Technologies is the capture rate, which indicates the ratio of consumer transaction volume to Coupang's revenue. In Q3 2024, this capture rate reached an impressive 98.4%.
Active Customer Base and Membership Dynamics
Coupang’s focus on increasing customer engagement continues to yield results, as evidenced by its 22.5 million active customers in the Product Commerce segment in Q3 2024, marking an 11% increase year-over-year. Despite raising the Wow Membership fee from 4,990 KRW to 7,890 KRW in August, Coupang has maintained strong user retention, a testament to its successful flywheel strategy. Aicel Technologies, which tracks monthly user data for Coupang and Coupang Eats, observed that Wow Membership growth remains robust. This consistent subscriber increase reflects the platform’s ability to keep users engaged even amidst a pricing change, enhancing revenue stability.
Enhanced Customer Spending and Loyalty Metrics
Coupang’s strategy has led to higher customer spending, with revenue per customer reaching $307—a 4% increase year-over-year. Adjusted for currency, this figure rises to $318, underscoring growth in customer purchasing behavior. Chairman Bom Kim highlighted that Wow Membership customers order nine times more frequently than non-members. Notably, long-term Wow members spend an average of 2.5 times more than newly enrolled members. Cohort analysis from Aicel Technologies supports Coupang’s growing customer loyalty trend, showing that both user retention and cross-service engagement rates are rising, a promising signal for future growth.
Market Share Expansion and Competitive Positioning
Coupang’s competitive positioning has strengthened, with Aicel Technologies data showing a higher customer retention rate than rivals, including SSG.com (139480:KS), 11st, G Market, Auction, Kurly, AliExpress (BABA:US), and Temu (PDD:US).
Coupang's food delivery business, Coupang Eats, is particularly benefiting from this trend, as more users migrate from competitors such as Baemin (DHER:GR) and Yogiyo. According to Aicel's cross-service purchase data, an increasing number of Baemin and Yogiyo customers are adopting Coupang Eats, while Coupang Eats users display loyalty by using fewer competing services. This migration not only expands Coupang Eats’ customer base but also strengthens its positioning in the food delivery market, further establishing Coupang as a diversified platform in the Korean e-commerce landscape.
Conclusion: Strong Q3 Performance Reflects Growth and Customer Loyalty
Coupang’s Q3 2024 performance is characterized by notable revenue growth, an expanding customer base, and an impressive increase in customer spending. The company’s success in capturing greater market share, particularly in its food delivery segment, indicates a competitive advantage driven by high customer retention and cross-service loyalty. All data in this analysis is sourced from Aicel Technologies, providing diverse investment insights and enabling continuous strategic evaluations.
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