Loss-making US food delivery firm DoorDash launches in Japan

U.S. food delivery firm DoorDash Inc, which is backed by SoftBank Group Corp, announced the launch of services in Japan on Wednesday, joining an increasingly crowded market that has grown during the coronavirus disease pandemic, Reuters reports.

Services will be initially limited to the city of Sendai in Miyagi prefecture, the money losing delivery firm told reporters, in a step that follows its expansion to Canada and Australia.

“Our strategy has always been to empower local economies, especially in the suburban markets that are historically underserved, yet the appetite for connectivity between merchants and customers is high,” Chief Executive Tony Xu said in a statement.

SoftBank already backs some of the largest delivery services in Japan, such as Uber Eats from Uber Technologies Inc and Demae-can Co.

Last month, DoorDash raised its forecast for annual gross order value, as stimulus checks helped keep food delivery demand resilient in the first quarter, even as vaccinations and an easing of curbs encouraged dining-out again.

DoorDash, which has also branched out into delivery from grocery and convenience stores last year, reported a near three-fold jump in quarterly revenue to US$1.08 billion.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.