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. Satoshi Yano, president and CEO of rival Demae-can Co., said that the price parity scheme has pushed up the number of users of its service. About 25,000 member restaurants have adopted the scheme since its introduction last year. “We can continue it because restaurants’ sales are growing,” he said. “It’s a win-win.” The Rocket Now delivery service, launched in January 2025, has been quickly growing thanks to its commission-free policy. The cumulative number of its app downloads exceeded seven million in June. Daniel Jaramillo, who heads the Japanese subsidiary of the service operating company, said that consumers in Japan want to “try something different.” Still, Daisuke Miwa, a restaurant business analyst, warns that the parity scheme will lead to “price competition among restaurants.” He said, “Whether the consent of restaurants can be obtained is the key to (the scheme) taking root.” END [Copyright The Jiji Press, Ltd.]