Alibaba and Coupang Step Up E-Commerce Battle with Big Investment in South Korea – Alibaba Gr Hldgs (NYSE:BABA)

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.

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