DoorDash, a well-known food delivery player from the United States, has reportedly started offering its services in Japan. This move will anticipatedly exacerbate the already strong battle for a chunk of the country's food delivery industry.
San Francisco based DoorDash offers delivery services in the United States, Australia, and Canada. From now, it is beginning operations in Sendai, a large town in northeastern Japan, where regional customers can use DoorDash to order from hundreds of local eateries as well as national food franchises. This will mark the company’s first operation in an Asian country.
Sendai was chosen by DoorDash to be the pilot city in Japan because it has a low market penetration rate but a large population and a strong small business ecosystem. DoorDash intends to put more local businesses online in order to better engage with customers.
Co-founder and CEO of the company Tony Xu stated that Japan is indeed one of the largest delivery marketplaces across the world, yet it is still highly underdeveloped in comparison to the size of its economy and population.
Xu added that in Japan, a majority of small enterprises are still offline. There are several cities with immense populations that still do not have reliable delivery services. Sendai, the company believes, is an thrilling location to begin.
Another official from DoorDash Japan stated that the response to DoorDash has been very positive, with large number of delivery executives and merchants signing up. The company is looking forward to help foster the burgeoning economy of Sendai.
DoorDash has been a top frontrunner in the U.S. food delivery business since 2019. It owns over half of the country's food delivery business, giving it a significant advantage over UberEats, Grubhub, and others.
By targeting undercut markets in suburban regions in the U.S., and by creating its brand ahead of the competition, the firm has been able to develop quicker than its competitors. Choosing Sendai over larger cities like Tokyo appears to be a continuation of this practice.