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Coupang weighs speed versus efficiency, applies for 'bundled delivery' patent

Published: 25 Mar. 2026, 15:09 Updated: 25 Mar. 2026, 16:56

Delivery trucks are seen parked outside a Coupang logistics center in Seoul on Feb. 11. [YONHAP]

Coupang recently filed a patent application for a "fulfillment center-based bundled delivery optimization algorithm," according to the retail industry on Wednesday. The technology analyzes inventory when a customer orders multiple items and groups them so they can be shipped together from the smallest possible number of fulfillment centers.

Coupang may be foregoing its dedication to speed for management efficiency, instead offering customers benefits other than early delivery in a newly-vamped delivery program.

The company would cut costs by using an algorithm that bundles ordered items scattered across multiple fulfillment centers into a single shipment while offering customers incentives in return.

Currently, even within a single order, items are delivered in multiple boxes if they are shipped from different locations. The practice has been criticized for wasting packaging materials, raising logistics costs and adding to delivery drivers’ workloads.

If the new algorithm is applied, deliveries could be somewhat slower than before, but Coupang’s plan is to maintain customer satisfaction by offering promotions such as discounts or rewards in return.

This model has already proven itself in global markets. Amazon’s No-Rush Shipping program gives Prime members digital content credits when they choose standard delivery instead of faster shipping. If Coupang adopts a similar system, it could also build a strong rewards program tied to its own services such as Coupang Play and Coupang Eats.

Coupang CEO Harold Rogers takes part in the e-commerce company's dawn delivery work from the evening of March 19 to the next morning, as part of his promise to take a closer look at the working conditions of the company's delivery workers. [COUPANG]

Improving logistics efficiency is tied not only to cost reductions but also to better working conditions. Recently, Coupang interim CEO Harold Rogers inspected working conditions while visiting a dawn delivery operation with liberal Democratic Party Rep. Yeom Tae-young.

Some observers say the company has presented a technical solution to political calls for improved labor conditions.

“It is still at the idea stage for improving delivery efficiency, and no specific business plan has been decided yet,” said Coupang.

“Attention is turning to whether Coupang will move beyond a simple race for speed and remake itself around sounder management,” said an industry spokesperson.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK JONG-SUH [[email protected]]