A U.S. food delivery firm, DoorDash Inc, which is backed by SoftBank Group Corp announced Wednesday the launch of services in Japan. They are joining an increasingly crowded market that has grown during the COVID-19 pandemic.
Services will be available to the city Sendai in Miyagi prefecture. The delivery firm told the reporters that they plan on expanding to Canada and Australia as well.
“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 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 as easing of curbs encouraged dining-out again.
DoorDash reported a near three-fold jump in quarterly revenue to $1.08 billion. They have branched out into delivery from grocery and convenience stores last year.
The company saw a surge in order volumes during the pandemic as consumers were hesitant about stepping out of the comfort of their homes due to COVID-19.
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