Uber to expand 'dark stores' in Japan, becoming retailer

Mar 03, 2022 | News On Japan

Mar 03, 2022 (Nikkei) - Uber Technologies will expand its network of "dark stores" in Japan as part of its effort to boost its rapid grocery delivery business, stepping further into a new frontier of online shopping that is quickly growing into a battleground.

Uber's meal delivery service, Uber Eats, opened two dark stores -- distribution centers for online shopping -- in Tokyo's Nihonbashi district and Setagaya Ward since December, making a move toward becoming a retailer itself. Dubbed Uber Eats Market, they are dedicated facilities stocked with fresh and frozen foods that are ordered via the Uber Eats app and delivered by registered couriers in as little as 30 minutes. Compared to listing products by supermarkets or convenience stores, running its own operation enables Uber to use data to predict demand and manage inventory efficiently.

Yukiko Muto, president of Uber Eats Japan, said in an interview that "gross bookings of those stores are extremely high" and that it plans to increase the number of stores in Tokyo. "We will focus on increasing use cases that serve the needs of all kinds of customers, through both partnerships and our own efforts." Muto said it aims to increase gross bookings for groceries by 3.5 times from 2021.

Groceries are becoming an important growth driver for Uber Eats, which launched in Japan in 2016 and has taken a lead in online meal delivery during the COVID-19 pandemic. It has signed up about 150,000 merchant stores and 100,000 couriers, and operates in all 47 prefectures. The company does not disclose order volume or its financials for Japan, but surveys often rank Uber Eats as one of the most popular food delivery brands in the country, along with by local app Demae-can.

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