It wasn’t born with 7-hour delivery, box-less returns, or 21 million active customers in a country of 22mn households. It started with impulsion, countdown clocks, and one of the most copied business models in VC history.

In 2010, it seemed the future of the next Google or Amazon was clear: steep discounts for group purchases of local deals. The so called “Groupon” business model would drive traffic and direct consumers to material savings. The local nature of the model meant there were many untapped markets.

Harvard drop out Bom Kim had an idea. He’d take Silicon Valley investment and port the Groupon idea to Seoul. Coupang, a play on “coupon” and the Korean onomatopoeia for “fun”, was launched.  

Not alone in launching group deals in South Korea, he faced no fewer than 30 Groupon-clones, including the original Groupon. Ingenuity would prevail though: he would become one of the first Facebook advertisers in South Korea, showing each user 72 ads a month.

By 2013 they had hundreds of millions in revenue and were prepping to IPO. But something was off. In a moment of incredible self-awareness, Bom Kim realized that while customers like Coupang, no one loves it. If he wanted to create a business that “wowed” customers, he’d have to rebuild the entire business. A week before the IPO prospectuses were printed, they called off the offering and instead looked to build a business that would deliver a consumer experience that was 100x better. No longer did they look up to Groupon, from now on Amazon would be their target.   

The road ahead was long, but clear: billions in infrastructure investment, tens of millions of warehouse square footage, millions of items, tens of thousands of delivery personnel, and a membership program.  

The result?

A company that outcompeted Amazon on delivery speed, with most orders taking just 7 hours. A “Rocket Wow” membership program that counts 14 million consumers. A Fresh grocery offering that seamlessly integrates into their normal logistics operation. And almost half a billion in GAAP operating profits.

Bom Kim did just ruthlessly copy Amazon, he relentlessly iterated their model.

South Korea is different than the US though. Ecommerce penetration is higher, population density is greater, and competitors are far from capitulating. In this report we will cover all of this, in addition to an in-depth analysis on the competitive landscape, Coupang’s value prop, our reverse DCF, and much more!

You can find the following and more in our report:

1. Founding History.
2. Business History.
3. Business.
4. TAM.
5. Competition.
6. The Coupang Model.
   • Coupang Flywheel.
   • Competitive Balance.
7. Other Initiatives.
8. International.
9. Cash Flow & ROIC.
10. Valuation.
11. Risks.
12. Model Summary.
13. Conclusion.

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