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DoorDash Makes First Foray Into Asia With Japan Expansion

By Rich Duprey - Jun 9, 2021 at 8:21AM

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Global expansion is a key part of the food delivery company's future growth plans.

DoorDash (DASH -2.17%) continues expanding globally as it announced it has entered into its first Asian market, launching operations today in Sendai, Japan.

It marks the third country outside of the U.S. the third-party food delivery specialist operates in, behind Australia and Canada.

Woman carrying DoorDash bag

Image source: DoorDash.

Because Japan is one of the most restaurant-dense countries in the world, DoorDash says it will have unique growth opportunities. Also, it is one of the most densely populated countries in the world with 347 people per square kilometer of land. In comparison, the U.S. has 36 people per square kilometer.

That makes operations much more efficient as DoorDash will be able to squeeze more deliveries per mile out of its operations as it eventually expands to other cities and regions.

Consumers can use the DoorDash app to place orders from hundreds of local restaurants, and the delivery specialist is making its Storefront ordering system available to merchants free of charge through the end of the year, except for processing fees.

Storefront allows customers to place takeout and delivery orders directly with the restaurant and lets them seamlessly integrate the Storefront platform into their existing websites. It's also making subsidized safety equipment available to "Dashers," the drivers who deliver the orders, and holding safety training sessions for them through the Miyagi Prefectural Police Department.

DoorDash isn't the only food delivery company in Japan. Beyond local start-ups, Uber Technologies has been in the country since 2016 when it launched in Tokyo. It also operates in South Korea.

Both it and DoorDash, though, view Japan as a growth market and DoorDash says Sendai is only the beginning.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

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DoorDash, Inc. Stock Quote
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$66.70 (-2.17%) $-1.48
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