TOKYO, 9 June -- U.S. food delivery company DoorDash Inc, who is supported 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.
Initial services will be limited to the city of Miyagi in the prefecture of Sendai, 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 the suburban economies, especially in local markets that historically are underserved, despite the need for connectivity between merchants and customers, said Chief Executive Tony Xu in a statement.
SoftBank already provides some of the largest transportation services in Japan, such as Uber Eats from Uber Technologies Inc and Demae-can Co Ltd.
In the first quarter, DoorDash lowered its forecast for annual gross order value as stimulus checks helped keep food delivery demand resilient, even as vaccinations and an easing of curbs helped dining-out again.
DoorDash, which branched out into delivery from the grocery and convenience stores last year also reported a fast three-fold climb in quarterly earnings to $1.08 billion.
The company has seen a decrease in order volumes during the pandemic as consumers are hesitant to step out order essential items by phone. What is the best way to introduce a healthy lifestyle?