Over the past year, Coupang's (CPNG -2.79%) stock has been down considerably, but there are a few encouraging signs ahead. In this video clip from "3 Minute Stock Updates" on Motley Fool Live, recorded on July 6, Fool.com contributor Brian Withers discusses one area of the South Korean-based e-commerce company that is booming and should spur sizable growth.
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Brian Withers: The company talked a lot about its customer experience and that's really what it views as its competitive advantage. Active customers over the past two years grew 36%, and the number of customers buying six or more different product categories increased 70% over that same time period, and the percentage of active customers using three or more of Coupang's offerings nearly tripled over the last year, so customers are coming in and they're getting more and more engaged.
You can see that revenue per active customer up 8%. The CEO talked about one of its fastest-growing offerings is Rocket Fresh, which is the nation's largest online grocery store in the market. It offers what customers believe is the largest selection of fresh groceries across Korea delivered to their doors within hours, purchase same-day, or what they call Dawn Delivery, where you can place an order before you go to bed and it shows up before you wake up in the morning. It's enabled by a national network of cold chain fulfillment centers and a proprietary delivery process.
So, this Rocket Fresh business has been in operation for three years and now it delivers billions of dollars of orders on an annualized basis, and the number of customers using this Rocket Fresh service increased 50% year over year in the first quarter. However, just only about a third of Coupang's active customers use the offering in Q1 so they talk about that being certainly a highlight and an opportunity ahead. But I'm actually starting to get interested in this company with the stock down so much they are executing very well in South Korea and certainly, these customer metrics show that.