Stagnation Puzzle in the World of Food Delivery - Japan's Dilemma

In Japan, the food delivery industry has been showing signs of stagnation despite the fact that the demand for such services has increased during the pandemic. The article investigates why an industry seemingly in high demand is grappling with such stagnation issues.

In Japan, food delivery services have seen a boom during the time of the pandemic, but so have the problems associated with it. Key concerns within Japan surround the working conditions for delivery personnel, service quality, and high commission charges to restaurants. These factors contribute to a complex situation of potential market stagnation, despite high consumer demand.

In contrast, the food delivery market in the US and EU has been exploding due to the lockdowns imposed during the pandemic. However, these regions also face their own challenges, such as restaurant and driver protests over pay and conditions, along with anti-trust investigations into the dominant market players.

Information for Your Country

For readers outside Japan, they can review the insights into the food delivery models in Japan, which may provide valuable lessons for their own markets. Moreover, they can keep an eye on global delivery services like Uber Eats, Deliveroo, and DoorDash.