business

SoftBank-backed food delivery firm DoorDash enters Japan

15 Comments

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 COVID-19 pandemic.

Services will be initially limited to the city of Sendai in Miyagi prefecture, the 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 Ltd.

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 $1.08 billion.

The company has seen a surge in order volumes during the pandemic as consumers hesitant to step out order essential items by telephone.

© Thomson Reuters 2021.

©2021 GPlusMedia Inc.

15 Comments
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A little to late in the game?

2 ( +5 / -3 )

Oh look, an original idea…….…..something Japan hasn’t had in decades.

-1 ( +2 / -3 )

Much too late in the market, another holdup investment. Buy, pust the stock up and run before it goes boom

-1 ( +2 / -3 )

I wonder if the deliverers are treated any better in Japan than in the US?

-6 ( +0 / -6 )

Welcome to the 'gig economy'

2 ( +4 / -2 )

shogun36Today  08:38 am JST

Oh look, an original idea…….…..something Japan hasn’t had in decades.

It's a US company, it says so in the first sentence:

U.S. food delivery firm DoorDash Inc, which is backed by SoftBank Group Corp, announced the launch of services in Japan 

Anti-Japan sentiment still exists (just) in this dark corner of the internet....

-1 ( +4 / -5 )

I tried them in NYC, they are ok. Nothing special.

-1 ( +1 / -2 )

These are horrible vulture companies, taken up to 30% of sales from hard working independent restaurants. It’s an unfortunate catch-22 situation for these small shop owners, when these billion dollar corporations enter their areas.

-1 ( +2 / -3 )

These are horrible vulture companies, taken up to 30% of sales from hard working independent restaurants. It’s an unfortunate catch-22 situation for these small shop owners, when these billion dollar corporations enter their areas.

Yup. And, they screw their delivery people as well. In the US, DoorDash was caught keeping some of the tips/gratuities that customers were leaving for the delivery people. And, Uber keeps changing the rates they pay the delivery people.

ALL of theses companies skirt labor laws by classifying the delivery people as independent contractors, rather than employees. So, they don't need to pay into FICA, Medicare, Unemployment Insurance, Disability, or Workman's Compensation funds. They provide zero health insurance (a necessity in the US), zero paid holidays, zero paid sick leave, zero paid vacation time, no add'l pay rate for overtime, and no guaranteed hourly wage.

That's why I asked the question about how the delivery personnel are treated in Japan. I was wondering if they're treated that poorly here, too. (I hope 100% the 500-600Y tips I left my Uber Eats people made it to them, the few times I've used UE.) I also wonder how many Japanese customers leave tips?

0 ( +3 / -3 )

Much too late in the market, another holdup investment. Buy, pust the stock up and run before it goes boom

DoorDash started before Uber Eats. And, they are privately funded by a handful of investors, such as Softbank.

So, there is no stock to buy, push up, and run from.

1 ( +1 / -0 )

It’s an unfortunate catch-22 situation for these small shop owners, when these billion dollar corporations enter their areas.

I didn't realize they were a racket that shook down restaurants until they signed up.

-1 ( +0 / -1 )

Not likely at all, but maybe the extra competition can let restaurants choose the service that squeeze the least out of their profits, or the deliverers to actually make a living out of their efforts.

0 ( +1 / -1 )

@zeram1

Spot on. Yet another parasitic tech company charging a %ge for a fixed cost service.

For those less informed, listen to a real restaurant owner before deciding that’s it’s such a great idea.

https://www.google.co.jp/amp/s/chicago.eater.com/platform/amp/2021/1/26/22250664/delivery-apps-destroying-restaurants-chicago-uber-eats-doordash-postmates

0 ( +1 / -1 )

The last thing we need here is more idiots on bikes.

1 ( +1 / -0 )

Anti-Japan sentiment still exists (just) in this dark corner of the internet....

There is no anti-Japanese sentiment (even China shimmers down after it surpassed Japan completely) but only skepticism against Japan. I don't count the Koreans in this case.

-1 ( +0 / -1 )

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