Coupang's Q4 2024: Unraveling Contradictions in Market Strategy, CapEx, and Eats Platform Fees

These are the key contradictions discussed in Coupang's latest 2024 Q4 earnings call, specifically including: Market Growth and Strategy, CapEx Spending Strategy, Eats Platform Fee Changes, and the strategy for Farfetch:



Revenue and Gross Profit Growth:
- Coupang reported revenue growth of 21% year-over-year, with gross profit growing by 48%.
- Growth was driven by increased customer engagement, operational efficiency improvements, and strong performance in the Product Commerce segment, particularly in FLC (Fulfillment Logistics Center) operations.

FLC and Automation as Growth Drivers:
- FLC revenue reported significant growth, with revenue from FLC increasing by 300% year-over-year.
- Automation and robotics investments led to a 16% improvement in line-haul costs and increased productivity, contributing to overall growth.

International Expansion and Taiwan Market:
- Coupang's expansion into Taiwan saw net revenue grow by 23% quarter-over-quarter in Q4.
- The growth was supported by the strong adoption of Coupang's Rocket Delivery service and the introduction of the WOW membership program.

Farfetch Turnaround:
- Farfetch's losses were significantly reduced, achieving a breakeven run rate after its acquisition by Coupang.
- The turnaround was driven by operational improvements and strategic realignment, refocusing on customer experience and operational excellence.