Coupang Inc. is making another attempt to crack the Japanese market, launching a food delivery service in Tokyo’s Minato district after its earlier quick-commerce venture failed in 2022.
The South Korean e-commerce company’s new service, Rocket Now, enters a competitive landscape where Uber Technologies Inc. controls about 70% of Japan’s food delivery market. The sector has nearly doubled to 330 billion yen ($2.2 billion) in 2022 from 170 billion yen in 2019.
This marks a strategic pivot for Coupang, which previously attempted to establish a quick-commerce operation in Japan through its subsidiary established in 2020. That venture, focused on delivering groceries and daily necessities, proved unsustainable due to high operational costs.
The company faces an uphill battle in a market that has already forced out other regional players like South Korea’s Baedal Minjok. Operating through its local unit CP One Japan, Coupang is betting that food delivery will require less complex logistics than its previous quick-commerce model.
Tokyo’s dense urban environment could work in Coupang’s favor, potentially allowing for higher order volumes and shorter delivery routes. However, the company’s track record of withdrawing from previous international ventures raises questions about its long-term commitment to the Japanese market.
