There is a prospect that a new era will open in three years where the entire population of 50 million people across the nation can receive anything with a day of ordering it with free shipping.
On March 27, Coupang announced its intention to expand its Rocket Delivery service to encompass the majority of regions nationwide, including islands and mountainous areas, by 2027. It is anticipated that approximately 70 percent of population-declining areas in the provinces will also be incorporated into Coupang’s “Coupang Influence Zone” program, which denotes areas where “Rocket Delivery” is accessible.
Coupang plans to invest over 3 trillion won in expanding nationwide fulfillment centers and delivery networks over the next three years until 2026, aiming to expand its Coupang Influence Zone from the current 182 districts to around 230 districts nationwide by 2027 in this country with a population of over 50 million. Since starting its Rocket Delivery service in 2014, Coupang has invested over 6.2 trillion won in securing domestic logistics infrastructure, establishing over 100 logistics centers in more than 30 regions nationwide. With additional new investments, the company aims to establish nationwide coverage as Rocket Delivery zones.
The areas included in the “Coupang Influence Zone” over the next three years are expected to approach approximately 70 percent of the population-declining areas designated by the Ministry of the Interior and Safety, totaling more than 60 locations. Currently, Coupang’s Rocket Delivery service is available in about 17 locations, but it is expected to increase to at least 43 locations within three years. Areas facing population decline, ranging from regions where the elderly population aged 65 and above exceeds 40 percent, to areas identified as the forefront of regional depopulation with populations collapsing below 30,000, are also included in the expansion targets.
The regions affected by low birth rates and aging populations are expected to greatly enhance quality of life with the introduction of the fast Rocket Delivery service. In regions where Coupang has previously expanded, such as Jeju Island, Samcheok in Gangwon Province, and Yeosu in South Jeolla Province, the number of users of Rocket Delivery has significantly surged.
In particular, the industry expects a significant increase in households subscribing to the Wow membership, which offers unlimited free rocket and same-day delivery, returns, product discounts, and more, for purchasing diapers, daily essentials, and groceries. Many of the population-declining areas announced by Coupang this time are often referred to as “food deserts,” where large supermarkets are not operational. An industry insider stated, “With the extreme decline in birth rates in rural areas and the coverage of newborns becoming news, Rocket Delivery, which allows for the purchase of diapers and daily essentials on the same day or the next day, is expected to rapidly emerge as ‘social infrastructure’ that enhances the residential attractiveness of rural areas.”
Most of the population-declining areas where Coupang has expanded are places where both the government and major local authorities are making concerted efforts to address regional depopulation.
With the introduction of Rocket Delivery to population-declining areas lacking shopping infrastructure, it is expected to contribute to the revitalization of local economies. Holding millions of Rocket Delivery items, Coupang enables residents in islands and mountainous areas to conveniently purchase goods from Seoul and the metropolitan area regularly. Moreover, they can reduce shopping costs by utilizing free Rocket Delivery and returns. It is anticipated that there will be an increase in local consumers reducing expenditures on additional delivery fees ranging from 3,000 to 5,000 won and return fees ranging from 4,000 to 5,000 won in rural areas.
A city planning expert said, “Addressing the issue of regional depopulation caused by aging is an urgent task that requires immediate solutions. In regions lacking infrastructure that is traditionally deemed essential, Coupang’s provision of essential items throughout every corner of these areas will establish itself as crucial infrastructure.”