Food delivery war rages amid global COVID-19 lockdowns

Aug 23, 2020 | News On Japan

Aug 23, 2020 (Nikkei) - With food deliveries expanding fast worldwide as people stay home amid the coronavirus pandemic, three players' growing dominance is realigning the industry in the United States, Japan and elsewhere.

According to L.E.K. Consulting, the food delivery market in the U.S. was worth $53 billion in 2019 and is expected to grow to about $88 billion by 2023. DoorDash, which has bought rival Caviar for about $400 million, now has the largest market share at about 45%, according to Edison Trends. Uber Eats, which has the second-largest share at 28%, announced in July it will buy Postmates, whose 7% share puts it fourth. The Netherlands-based Just Eat Takeaway.com has announced it will acquire Grubhub, ranking third with a 17% share.

In China, Meituan Dianping is an unchallenged leader with a 70% share. The IT company is attracting attention as an emerging platform like Alibaba Group Holding and Tencent Holdings. Its strategy centers on a "superapp" that performs multiple functions, such as reserving hotel rooms and finding private lodging in addition to ordering food.

In Southeast Asia, superapps have a unique ecosystem in which food delivery services evolved from ride-hailing apps, including Gojek's GoFood in Indonesia and Vietnam's GrabFood. The common use of motorcycles in these countries makes it easy for the services to find workers who can reach houses even in narrow alleyways.

In Japan as well, competition is heating up as the market grows. Uber Eats, operated by Uber Technologies, has gone on the offensive with the introduction of a fixed-rate service. Domestic player Demae-can and other startups are making their presence increasingly felt by focusing on premium and popular restaurants and hiring higher-quality delivery staff.

Demae-can became an effective subsidiary of Line in April.

"What we set out to do in five years we can now do in just a year," a Demae-can insider said.

Line, which acquired about 20% of the operator of Demae-can in 2019, invested another 30 billion yen ($280 million) to make the company a subsidiary. Hideo Fujii, a Line executive officer in charge of its delivery business, became president of Demae-can in June, and Line has dispatched 50 IT engineers to the new subsidiary. The company plans to integrate its Line Delima food delivery service with Demae-can's under the Demae-can brand name and to make it easier for users of the Line app to register for the service. Line aims to take full advantage of its technology and ample funding to enhance the service's ease of use and expand delivery offices.

The Line app has 84 million registered users and potential customers for the delivery service, which the company is positioning as the core of its strategy of providing wide-ranging services for people's lives through a superapp.

Toyota to Launch Self-Driving Taxis in 2027

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji Puts on First Snowcap

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

Chinese Female Spy Suspected of Targeting Nvidia Chief

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

Japan Blocks Websites Leaking GMO Personal Data

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 Heads Toward Japan's Remote Islands

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS

MORE Society NEWS

Landlords Bear Financial Burden of Lonely Deaths

Japan's rapidly aging population is facing a growing crisis of elderly people dying alone at home, with grieving families sometimes unable to see their loved ones before burial and landlords increasingly forced to shoulder substantial cleanup and estate clearance costs when relatives abandon their inheritance.

Prison Inmates Help Preserve Japan's Traditional Crafts

Traditional Japanese crafts are finding an unexpected source of skilled workers in prisons across the country, where inmates are learning painstaking production techniques that build patience and concentration while helping preserve industries struggling with a shortage of craftspeople.

South Korean Man Arrested Over Killing of Japanese Woman Following Stock Crash

A Japanese woman in her 20s was found dead at an apartment complex in Cheonan, central South Korea, on October 29th, prompting police to detain a South Korean man in his 30s on suspicion of murder after he allegedly confessed to killing her because he had decided to commit suicide following stock market losses but could not bring himself to die alone.

Japan's Imperial Family Hosts Autumn Garden Party

Emperor Naruhito and Empress Masako hosted the annual autumn garden party at the Akasaka Imperial Gardens in Tokyo on October 29, welcoming approximately 1,400 guests, including actor Kotaro Yoshida and novelist Miyuki Miyabe, while female members of the Imperial Family attended in traditional Japanese attire.

Rescuers Save Paraglider Who Stopped Breathing

A 59-year-old water sports rental shop owner in Omachi, Nagano Prefecture, has received a letter of appreciation from police after rescuing a paraglider who plunged into a lake on September 21, pulling the unconscious man from the water and performing CPR after discovering he was no longer breathing.

Couple's Gardening Hobby Turns Out to Be Cannabis Cultivation

A married couple in Aira, Kagoshima Prefecture, have been arrested after police discovered cannabis plants growing in pots on the terrace of their home during a search connected to a separate investigation, authorities said on October 28th.

Elderly Woman Drives Along Railway Tracks, Ends in Tragedy

A woman in her 80s was killed after her car entered railway tracks on the Odakyu Enoshima Line in Fujisawa, Kanagawa Prefecture, shortly before 10:30 p.m. on October 27, with security camera footage showing the vehicle traveling along the tracks, passing an oncoming train and stopping with its hazard lights flashing before being struck from behind by another train.

Teen Hospitalized After Electric Shock From Basketball Hoop

A teenage male was rushed to a hospital after suffering an electric shock while putting away a motorized basketball hoop at a gymnasium in Kitakyushu, Fukuoka Prefecture, in an accident believed to have been caused by an incompatible extension cord, according to a report on October 27th.

< 2 3 4 5 >