Opening Up New Markets Nationwide Through the Delivery Agency Business

「By rolling out a locally focused service, delivery outsourcing (Sharing DeliveryⓇ), throughout Japan」

「During the current period, services were newly launched in 22 prefectures. The service area expanded to all 47 prefectures, enabling Sharing Delivery® to achieve nationwide coverage within 5 years of its full-scale launch in 2017.」

「The company actively expanded the Sharing Delivery® service area. During the third quarter, services were newly launched in Yamagata, Gifu, Akita, Tottori and Shimane prefectures. As of the end of May, the service area had expanded to 44 prefectures, establishing a structure capable of providing the service to approximately half of households nationwide.」

「During the second quarter, services were newly launched in Kochi, Kagawa, Tokushima, Fukui, Wakayama, Toyama, Gunma, Nagano, Saga and Fukushima prefectures, expanding the service area to 39 prefectures. The company also worked to increase the number of delivery personnel to meet growing demand, bringing the number of delivery personnel to approximately 10 times the level of the same period of the previous year.」

「Sharing Delivery® expanded to 29 prefectures, including through the launch of services in Oita, Yamanashi, Mie and Ishikawa prefectures. In addition, efforts to increase the number of delivery personnel and restaurants resulted in the number of deliveries through Sharing Delivery® rising to approximately 5 times the level in the same period of the previous year.」

「To meet demand for Sharing Delivery® in each region, the company accelerated the rollout, expanding the service to 1 Tokyo metropolis, 1 prefecture, 2 urban prefectures and 21 prefectures as of the end of August 2020.」

「To meet demand in each region, the company actively expanded the service area, beginning with its first rollout in Kumamoto Prefecture.」

「The company has worked to expand the service area, primarily through directly operated locations, while acquiring restaurants in underserved categories in each region.」

「In the Demae-can business segment, as of the end of the first quarter of the current consolidated fiscal year, the number of active users was approximately 3.10 million, up 13.4% year on year, the number of participating stores was 20,720, up 16.2%, the number of orders was approximately 7.15 million, up 13.7%, and the number of Sharing Delivery® locations was 239, up 206.4%.」

「As part of the acceleration of the Sharing Delivery® business rollout, the service newly entered Hokkaido, Miyagi, Tochigi, Ibaraki, Kyoto, Nara and Hiroshima prefectures, expanding the number of locations to 215.」

「In accelerating the rollout of the Sharing Delivery® business, the service area continued to expand steadily, including entry into Hokkaido in April 2019, reaching 161 locations as of the end of May 2019. During the third quarter consolidated accounting period, major chains such as Sushiro and popular local restaurants also newly joined.」

「As part of efforts to accelerate the rollout of the key Sharing Delivery® business, popular chains including Hidaka-ya, Uobei and Miyamoto Munashi newly joined during the second quarter accounting period, while the number of popular local restaurants also increased steadily. To expand the Sharing Delivery® service area, the company promoted the development of a profitable model for delivery locations and newly entered Kyoto, Nara and Hiroshima prefectures. In Fukuyama, Hiroshima Prefecture, a locally based transport company joined as a new delivery partner. As a result, the number of delivery locations reached 104 as of the end of February 2019.」

「To accelerate the rollout of the key Sharing Delivery® business, major popular chains such as Kappa Sushi, which did not offer their own delivery service, and popular local restaurants joined Demae-can. In addition, the service was launched in northern Kanto in November 2018, and operations at delivery locations were commenced by Japan Best Rescue System Co., Ltd. as a new collaboration partner. As a result, the total number of delivery locations reached 78 as of the end of November 2018.」

「Under the initiative to develop stores for market expansion, the company began fully scaling up Sharing Delivery®, reaching 60 hubs as of the end of the current fiscal year. The service area expanded substantially from 10 hubs at the end of the previous fiscal year, with the company also entering the Kansai and Tokai regions.」

「The delivery outsourcing hub service was launched in Nagoya, Aichi Prefecture, the first such service in the Tokai region, and had expanded to a total of 33 hubs as of the end of May 2018.」

「Under the initiative to develop stores for market expansion, the company stepped up the expansion of Sharing Delivery®. During the second quarter, major popular chains such as Ringer Hut and Marugame Seimen, as well as popular local stores in new service areas, joined the Demae-can partner-store network, bringing the number of partner stores above 16,000 on 31 January 2018. Sharing Delivery® hubs centered on the newspaper retailer ASA also expanded steadily, reaching a total of 23 as of the end of February 2018.」

「Under the initiative to develop stores for market expansion, the promotion of Sharing Delivery™ brought major popular chains, such as Gyoza no Ohsho and Tendon Tenya, which had not previously offered delivery, as well as popular local stores, into the Demae-can partner-store network. Sharing Delivery™ hubs centered on ASA also expanded steadily, reaching a total of 17 as of the end of November.」

「As part of efforts toward the sustainable growth of the Demae-can business, the first store opened in March in Sagamihara, Sagamihara, Kanagawa Prefecture, through collaboration with ASA, the newspaper retailers that are business partners of The Asahi Shimbun Company, with which the company entered into a business partnership agreement on 15 December of the previous year, to expand community-based delivery locations. The second collaborative store opened in May in Machida, Machida, Tokyo.」

「To accelerate the rollout of its delivery service based on the delivery outsourcing model launched in August of the previous year, the company entered into a business partnership agreement with The Asahi Shimbun Company on 15 December of the previous year, partnering with ASA, the newspaper retailers that are business partners of The Asahi Shimbun Company.」

「The company plans to expand into areas with expected future growth, based on the expertise it has developed through operating Demae-can.」

「The business model for the delivery outsourcing business is intended to further evolve the company's franchise model and open new markets nationwide.」