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US food delivery application Made by Dash has been marketed in Japan, the company’s first attempt in the Asian market and the latest move by a large distribution group to demand a boom caused by pandemics spread worldwide.
DoorDash, the U.S. market leader, said the move will allow it to enter “one of the world’s densest restaurants” even though it will be relatively small.
Representing the U.S. strategy, which for the first time focused on suburban areas outside major cities, DoorDash said it listed “hundreds” of restaurants in Sendai, north of Tokyo, with a population of about 1 meter.
“It’s a very poorly stocked market,” CEO Tony Xu told the Financial Times on Tuesday, describing Sendai as the country’s “microcosm”. “Across the nation of Japan, as we have seen, the most generous calculations are delivered by traders at 10%. So I think they are very early.”
Japanese restaurant culture allows people to stop and eat on the way home rather than deliver food, but new entrants are seeing the opportunity in a growing population of retirees and double-income families.
The move comes as major app delivery companies are aggressively expanding into new markets, betting that the habits created by pandemic-related blockchains will be sustainable. At the peak of U.S. lockout measures, DoorDash’s revenue fell more than 200 percent, boosting its initial successful public offering. the company raised nearly $ 3.4 billion.
Last month, The Financial Times reported DoorDash was preparing to launch in Germany, with another competitive market that will put the company on Just Eat Takeaway and Delivery Hero, as well as Uber Eats. he told FT in April He planned to launch in the largest economy in Europe within “a week”.
Meanwhile, with the purchase of Grubhub, which is yet to close, Just Eat Takeaway will establish its first presence in the U.S., threatening a U.S. market share of more than 50 percent of DoorDash.
In Japan, DoorDash will face well-known opponents, as well as established local players.
“It’s definitely going to be very difficult,” Xu said. “When we’re talking about investment like Japan, we’re talking about a kind of investment that takes many years.”
Uber Eats was launched in the country in 2016, and in 2020 Delivery Hero and China’s Didi Chuxing. Demae-can, headquartered in Tokyo, has partnered with nearly 60,000 merchants and has 5.82 million active users. It also offers a wider range of services, such as mail order and dry cleaning.
DoorDash will also have to contend with powerful local businesses in nearby markets, including food delivery cooperatives and Yamato and Sagawa package services.
While DoorDash is starting to expand into U.S. shopping stores, Xu said he will not be in a hurry to make similar moves in Japan.
“Crawl, walk, run,” he said. “We certainly don’t want to make the mistake of trying to copy and paste what we’ve worked on in other geographies. I think we’re going to have to build a very Japanese product for ourselves.”
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