TOKYO – As food shipments grow around the world while others stay home amid the coronavirus pandemic, the developing 3-player dominance is realigning industry in the United States, Japan, and elsewhere.
According to L.E.K. Consulting, the U.S. food delivery market valued $53 billion in 2019 and is expected to succeed at around $88 billion by 2023. DoorDash, which bought its rival Caviar for about $400 million, now has the highest percentage of place on the market with about 45%, according to Edison Trends. . Uber Eats, which has the largest percentage of the moment at the time, announced in July that it would buy Postmates, whose 7 percent put it in fourth place. Dutch company Just Eat Takeaway.com has announced that it will win Grubhub, third with a 17% percentage.
In China, Meituan Dianping is an undisputed leader with a 70% stake. The IT company is attracting attention as an emerging platform such as Alibaba Group Holding and Tencent Holdings. Its strategy focuses on a “superpp” that performs functions, such as booking hotel rooms and locating personal accommodation in addition to ordering food.
In Southeast Asia, superapps have an exclusive ecosystem in which food delivery has evolved from telecare applications, adding Gojek GoFood in Indonesia and GrabFood in Vietnam. The regime of use of motorcycles in these countries allows the smooth location of staff who can succeed in homes, even in narrow alleys.
Also in Japan, the festival is intensifying as the market unfolds. Uber Eats, operated through Uber Technologies, has gone on the offensive with the advent of a fixed-rate service. The national actor Demae-can and other new companies are making their presence felt by focusing on popular and high-end restaurants and hiring more delivery staff.
Demae-can an effective subsidiary of Line in April.
“What we’re going to do in five years, now we can do it in just one year,” said one Demae-can informant.
Line, which acquired about 20% of the operator Demae-can in 2019, has invested another 30 billion yen ($280 million) to turn the company into a subsidiary. Hideo Fujii, a Line executive in the pace of his delivery activities, became president of Demae-can in June, and Line sent 50 IT engineers to the new subsidiary. The company plans to integrate its Line Delima food delivery service with Demae-can under the Demae-can logo and facilitate the registration of Line users in the service. Line aims to take full advantage of its generation and sufficient investment for the ease of use of the service and expand delivery offices.
The Line app has 84 million registered users and potential consumers for the delivery service, which the company positions as the core of its strategy of offering a variety of for people’s lives through a superapp.
Line of demanding situations Uber Eats, which, with 30,000 registered places to eat, is the first home food service in Japan. On August 6, Uber Eats introduced a service that provides unlimited food delivery that costs at least 1200 yen for a monthly fee of 980 yen. With Uber taking 35% of place sales to eat and 10% of shipping costs, your spending is likely to increase. He hopes to make up for this with a superior call generated through the new plan.
While the two main players now dominate Japan’s food delivery industry, start-ups are making their presence felt. Tokyo-based Menu, which in 2019 introduced an app that provides data on takeaway stores, opened a food delivery service in April. Expanding the links established through the takeaway data service, Menu has already registered 15,000 restaurants for the delivery service, making it an emerging competitor.
One sign of his strength is that he brought a monthly payment at a steady rate of 980 yen on July 1, a month ahead of Uber. The payment for the delivery of the popular menu is three hundred yen. A constant rate user receives a 5% reduction in purchases of more than 1,500 yen and can enter a coupon draw worth 500 to 10,000 yen.
“It will be a very important year for us to make our way. Our most sensible priority is to build users” than short-term benefits, said Makoto Yamashiki, Menu’s head of promotion.
The menu has concepts beyond constant rates. He has introduced a “Supreme Restaurants” service that delivers food from about 30 places to eat that require reservations or that have queues. The list includes Ginza Kyubey, the place to eat sushi where, in 2018, Prime Minister Shinzo Abe met with U.S. President Barack Obama. The service requires a reservation two days in advance, but has proven popular.
Many consumers doubt the reliability of food delivery services. There have been cases where the low quality of delivery staff has become an issue.
“[Our] experienced delivery has a wealth of knowledge,” said a Menu spokesman. “For example, they’ll use towels to stuff between the bowls of ramen and the inside of the bag so that the soup doesn’t cause damage.”
The use of workers saves education costs.
“When it comes to food delivery, it’s not like we could make paints of the same quality,” said Kawamura, who had already delivered thousands of times for Uber. “I’m satisfied [with the paintings for Menu] because they appreciate the skills of the delivery staff.”
The menu also offers discounts on delivery prices. If two or more people order at the same restaurant, there is no shipping fee. The company can save on delivery prices by combining orders so that a user can deliver them all. This formula works because Menu also charges restaurants for delivery.
The expansion of home delivery has led to the creation of a new form of food service in which “ghost” kitchens only have to prepare food and not serve it.
One of those kitchens, which passes through the Ghost Restaurant Laboratory, is located in the Nishiazabu district of central Tokyo. A circle of family members’ kitchen is a little smaller than a classroom.
The kitchen prepares dishes and prepares them for delivery. He’s developed a dozen brands, making everything from soups to salads. Investors come with Toridoll Holdings, which operates the Marugame Seimen noodle eating chain.
Ghost kitchens take a variety of forms. In the United States, a typical operation provides a shared kitchen where chefs from other restaurants cook pieces specially designed for delivery. It is rare in Japan, where chefs are still open to the concept of sharing a kitchen and many ghost kitchen operators have their own kitchens. Seven – i Food Systems, which operates Denny’s chain, opened a ghost kitchen in Tokyo’s Oimachi district in May.
According to the Japan Food Services Association, combined sales of approximately 38,000 of its members’ restaurants declined by 22% in June compared to last year. This was an improvement from the sharp 40% drop in April, however, the recent resurgence of COVID-19 led to some other drop in sales. The president of a company that operates restaurants, adding the popular izakaya bars and restaurants, said the scenario was so serious that “the only way to do that is to rely on delivery.”
The Japanese food delivery market is expected to succeed at approximately 150 billion yen by the end of the year. Survival of places to eat would possibly depend on your ability to take credit for delivery to upgrade the old place to eat with the new place to eat.
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