US No.1 Food Delivery Company DoorDash Enters Japanese Market

SoftBank Group Invested DoorDash
Expands to Japan Following Canada and Australia
First Entry into Asian Market

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] DoorDash, a U.S. food delivery company reportedly invested in by SoftBank Group, is entering the Japanese market. DoorDash's overseas expansion to Japan marks its third international market after Canada and Australia, and its first entry into the Asian market.

According to major foreign media on the 9th (local time), DoorDash announced that it will launch services in Sendai City, Miyagi Prefecture, located in northern Tokyo, Japan.

Until now, DoorDash has employed a differentiated strategy of starting services in suburban areas outside major cities and gradually expanding, which has been evaluated as effective.

For the Japanese market, DoorDash plans to imitate its U.S. market strategy by starting services in Sendai and gradually expanding.

Restaurants in the Sendai area can receive orders through the DoorDash application (app) or use a 'storefront' that accepts orders via their own websites to provide food pickup and delivery services.

DoorDash stated, "The storefront service will operate without commission fees until the end of this year," adding, "Only payment processing fees will be charged to franchise stores."

CEO Tony Xu said in a statement, "Our strategy focuses on suburban markets where services were lacking in the local economy but there was a strong desire for connection between merchants and customers."

Meanwhile, DoorDash was founded in San Francisco, California, by Tony Xu, a second-generation Chinese-American immigrant. Benefiting from the COVID-19 pandemic last year, DoorDash has continuously expanded its market share, recording 56% of U.S. food delivery market sales as of April, ranking first in market share.

This content was produced with the assistance of AI translation services.