Alibaba and Coupang are stepping up their e-commerce battle with major investments in South Korea

Alibaba Group Holding Limited Through its online platform, AliExpress has significantly expanded its presence in South Korea, doubling its user base to 8.58 million by April, according to Wiseapp (NYSE:BABA).

Alibaba has allocated $1.1 billion to South Korea to build a new logistics center. This expansion comes in the face of fierce competition from the national online retailer Coupang, Inc (NYSE:CPNG), which is aggressively investing in advanced technologies and logistics to maintain its market share, drawing inspiration from Amazon.Com Inc (NASDAQ:AMZN).

Coupang reported a net loss of $24 million in the first quarter, its first in seven quarters. According to Nikkei Asia, this loss was due to significant investments in artificial intelligence-powered robots and an extensive network of delivery drivers.

Alibaba’s net income fell 86% to $453 million in the comparable quarter due to a net loss on investments in publicly traded companies in the quarter. Adjusted net income fell 11% YoY to $3.38 billion.

Coupang CEO Kim Bom-suk highlighted concerns about growing competition from Chinese e-commerce platforms offering low-cost products such as AliExpress and PDD Holdings Inc (NASDAQ:PDD) Ago.

AliExpress’s strategy includes a $1.1 billion investment in a logistics center and call center in South Korea, aimed at matching Coupang’s short delivery times.

In the domestic market, Coupang faces stiff competition from Naver, which holds 20% market share compared to Coupang’s 22%.

To diversify, Coupang is exploring new opportunities in grocery and food delivery, areas where Chinese rivals are struggling.

Price Actions: At last check on Friday, CPNG stock was up 0.34% at $23.31 pre-market.

Reservation: This content was created in part using AI tools and reviewed and published by Benzinga editors.

Photo via Shutterstock

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This article Alibaba, Coupang Step Up E-Commerce Fight With Big Investments in South Korea originally appeared on Benzinga.com