Two major mobile carriers aim to expand their own economic zones with food delivery under their umbrella [EC Now]

July 14, 2021 8:00

Major mobile carriers are conspicuously moving to strengthen cooperation with food delivery. Last year, the Softbank Group effectively acquired Demae-can, and in June this year KDDI announced a capital and business alliance with menu. Aiming to penetrate the smartphone payment service developed by the company through food delivery that continues to grow in the daily stay home. By linking owned resources such as communication, EC, payment, points, etc., we will create synergies and lead to expansion of the economic zone.

The point of the article! (1) KDDI, which invested in the venture menu (2) Softbank Group also strengthens cooperation with food delivery (3) DoorDash enters Japan (4) A more severe strategy is required in the future To lead the race?

■KDDI Invests in Menu, a Venture Company

KDDI invested approximately 5 billion yen in menu to acquire 20% of the shares, making it an equity-method affiliate. The venture company menu has been developing a food delivery business through the app "menu" since April last year. One year after its launch, the service will be expanded to 47 prefectures, and the number of participating restaurants will be about 60,000 (including the number of applications).

The menu has grown rapidly, but the only payment method is credit card, which is not convenient compared to other food delivery services. By becoming a KDDI affiliate, in addition to being able to use KDDI's smartphone payment service "au PAY" from mid-July, "menu" will be added as a mini application of "au PAY". In collaboration with the "au Smart Pass Premium" service, which allows you to watch videos, music, books, etc. for free on a monthly basis, it will lead to an increase in the usage rate of "menu".

While the mobile phone business, which is the main business, is sluggish, KDDI has expanded the au economic zone centered on the settlement business through "au PAY" members. In the future, the company plans to strengthen real-world contact points that serve as a gateway to consumer behavior, such as food delivery, for which demand is expected to increase.

In the "menu", there is also a campaign to increase the return rate of Ponta points by using "au PAY". Since last year, KDDI has integrated its point services into Ponta points, embarking on an open strategy.

■SoftBank Group, which owns two major food delivery companies

SoftBank Group (SBG) is also strengthening its ties with food delivery. First, since 2018, SBG has invested in Uber Technologies in the United States, to which Uber Japan, which handles Uber Eats, belongs.