Coupang decided to carry out organizational reshuffle for its "rocket delivery." Rocket delivery is a service that allows users to take delivery of goods they order within 24 hours regardless of weekends or holidays.
Coupang's differentiating delivery strategy attracted strong response from local consumers. To offer this service, Coupang increased the number of its own "Coupang Men" couriers by a large margin. The organizational reshuffle it now decided to carry out aims to cut other costs in order to fully put in place the Coupang Men service system.
According to industry sources on January 24, the e-commerce company recently reduced its payrolls in business backup and sales organizations. In contrast, it increased the number of Coupang Men up to 3,600, a 36-fold increase from 100 in March 2014.
The operation of the Coupang Men system which is the backbone of the rocket delivery system, requires lots of personnel cost. The annual salaries for a single Coupang Man are estimated at around 40 million won, a lot higher than those for other firms.
