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 Manager Yulia Brovkina said that Japanese consumers are "rightly sensitive" to prices and that the company prioritizes making services affordable amid rising inflation.

The Japanese food delivery service market is continuing to grow steadily, but penetration lags behind that in the United States and South Korea as consumers in Japan in general think deliveries are costly.

Under the price parity scheme, delivery costs and commissions are basically covered by delivery agencies and users. While the service puts pressure on agencies' profits, it is expected to lead to an increase in the number of orders due to the lower prices.

The introduction of the price parity scheme has led to an average increase of about 80 pct in sales for about 22,000 Uber Eats member restaurants, according to the company.

[Copyright The Jiji Press, Ltd.]