Coupang (NYSE: CPNG) has decided to exit the Japanese market.
According to reports from Nikkei and Reuters, Coupang has notified its Japanese customers that it will cease operations on March 21.
Unlike its Amazon-style e-commerce business in South Korea, Coupang’s Japanese business has been focused on Doordash and Delivery Hero-style Q-commerce since June 2021.
However, after a review of its trial operations, Coupang has decided to discontinue its Japanese business.
In the past, Coupang has taken a cautious approach to business expansion, usually testing different strategies before deciding to expand or withdraw.
This time, the Japanese business was discontinued, and it needed to meet the company’s standards.
Coupang Japan mainly delivered products to residential areas in Tokyo, such as Meguro and Setagaya wards.
It had partnered with the Takashimaya department store and Daiso, a 100-yen store, to deliver about 5,000 products.
In recent earnings calls, Coupang has emphasized its intention to strengthen profitability, indicating that this decision is part of a broader effort to optimize its operations.