Price Parity Growing in Food Delivery in Japan
Tokyo, Aug. 10 (Jiji Press)--Food delivery service providers in Japan are increasingly allowing customers to order items at prices equivalent to those in physical stores, aiming to increase the number of users by dispelling the belief that such services are costly. In March, Uber Eats Japan Inc., which has more than 120,000 member restaurants, introduced the price parity scheme. General Mana...
In Japan, food delivery service providers are increasingly offering customers the option to order items at prices comparable to those in physical stores. This initiative aims to boost user numbers by addressing the common misconception that such services are expensive. In March, Uber Eats Japan Inc., which serves over 120,000 member restaurants, launched its price parity scheme.
General Manager Yulia Brovkina noted that Japanese consumers are highly price-sensitive and that the company is committed to keeping its services affordable amidst rising inflation. Japan's food delivery market is growing steadily, but it still lags behind those in the United States and South Korea as many Japanese consumers believe that deliveries are costly.
Under the price parity scheme, delivery costs and commissions are mainly covered by delivery agencies, with users bearing no additional charges. While this approach puts pressure on agencies' profits, it is anticipated to result in a surge in orders due to the lower prices. Since its introduction, the scheme has led to an average increase of approximately 80% in sales for around 22,000 Uber Eats member restaurants, according to the company.
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