Tokyo - the U.S. food delivery company DoorDash Inc, which is backed by SoftBank Group Corp., announced the launch of its 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 Miyagi in the prefecture of Sendai, the Money Loss Delivery Company told reporters in a step that follows its expansion to Canada and Australia.
Historically, our strategy has always been to empower suburban economies, especially in the local markets, but the appetite for connectivity between merchants and customers is high, Tony Xu said in a statement.
SoftBank already supports 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 estimate for annual gross order value as stimulus checks helped keep food delivery demand resilient in the first quarter, even as vaccines and an easing of curbs encouraged dining out again.
DoorDash, which last year has also branched out into fast food delivery and convenience retail stores, reported a near three-fold increase in quarterly revenue to $1.08 billion.
The company has seen a surge in order volumes during the pandemic, as consumers forced to step out order essentials by phone.