Demae-can

Basic Information

Stock Code
2484
Industry
Information and Communications
Category Detail
Bento & Delivery Services
Prefecture
Tokyo
Establishment Year
September 1999
Listing Year
June 2006
Official Website
https://corporate.demae-can.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Town News, Mandarake, Del Sole, Fanderly, Zaplas, Ride On Express Holdings, Silver Life, Shokubun

Overview

Demae-can is Japan's largest food delivery portal operator founded in 1999, offering nationwide delivery services and a variety of value-added services.

Current Situation

Demae-can boasts over 60,000 partner stores and approximately 4 million active users in fiscal 2023, establishing a solid position in the industry. Its main delivery portal site offers diverse genres of restaurant information and delivery services nationwide, supporting stores without delivery functions through sharing delivery. In recent years, it has enhanced operational flexibility and scalability by migrating systems to AWS. Through a capital and business alliance with the LINE Group, it has bolstered financial strength and customer acquisition power, while expanding new services like Arena Delivery for sports and events. It maintains competitive superiority through service diversification and has succeeded in shrinking its net loss via efficient advertising and promotion expenses. Moving forward, emphasis on quick commerce in instant delivery and new customer acquisition is positioned as mid- to long-term growth drivers.

Trivia

Interesting Facts

  • Operates Japan's largest-scale food delivery portal site
  • Nationwide Sharing Delivery rollout since 2017
  • First to realize seat delivery at sports events
  • Delivery workers mainly operate as independent contractors
  • Effectively became LINE Group subsidiary in 2020
  • Operates Shiire-kan EC site for restaurants
  • Established current management after successive president changes in 2020
  • Past services for Wii and Wii U TV game consoles
  • First in Japan to introduce manga delivery service
  • Uses celebrities in ads to boost recognition
  • Provides region-specific senior delivery services
  • Partner stores exceeded 60,000 in 2021
  • Payment diversification through Amazon and Yahoo! partnerships
  • Delivery areas cover all 47 prefectures
  • Achieved profit improvement through ad expense optimization

Hidden Connections

  • LINE Corporation holds over 22% stake as de facto parent company
  • Strong ties with Z Holdings through shareholding
  • Expanding e-commerce domain through Amazon collaboration
  • Capital and business alliance with Asahi Shimbun for media strengthening
  • Some partner stores cater to special needs like arena events
  • Featured on TV Tokyo's 'Cambria Palace' boosting fame
  • Diverse delivery methods for workers is an industry-leading example
  • AWS adoption enabled flexible handling of surging demand

Future Outlook

Growth Drivers

  • Expansion of instant online supermarket and quick commerce markets
  • Market development for event Arena Delivery
  • Complete nationwide setup of Sharing Delivery network
  • Marketing enhancement via digital ads and customer data
  • Ease of service expansion with established AWS base
  • Operational stability through logistics efficiency and delivery worker support
  • Customer convenience improvement with diverse payment methods
  • Customer base expansion via LINE Group and Yahoo! collaborations
  • Deepening of technology utilization in daily life
  • Strengthening cooperation with restaurants and logistics partners
  • Demand stimulation through finer delivery area expansion
  • Increase in new and value-added service rollouts

Strategic Goals

  • Service provision to all cities, wards, towns, and villages nationwide
  • Realization of Demae-can as life infrastructure
  • Building sustainable delivery network and achieving carbon neutrality
  • Maintaining industry-leading profitability and market share
  • Active utilization of digitalization and automation tech
  • Expansion of new services meeting diverse customer needs
  • Employment environment improvements prioritizing delivery worker ease
  • Innovation promotion through industry collaborations
  • Expansion of social contributions and regional economic revitalization
  • AI utilization and personalization for enhanced customer experience

Business Segments

Procurement and Logistics for Restaurants

Overview
Comprehensive provision of necessary materials and logistics support for restaurants.
Competitiveness
Industry's largest delivery network integrated with EC site
Customers
  • Restaurants
  • Delivery Stores
  • Food Chains
  • Restaurants
  • Cafes
  • Office Dining Services
Products
  • Food Containers
  • Delivery Materials
  • Procurement Ingredients
  • Logistics Support Services

Online Supermarket and Quick Commerce

Overview
Online supermarket business enabling same-day delivery.
Competitiveness
Real-time delivery info management and large-scale delivery network
Customers
  • Consumers
  • Retailers
  • Corporate Offices
  • Shipping Agencies
Products
  • Instant Delivery Service
  • Fresh Foods
  • Daily Necessities
  • Online Ordering Platform

Event and Arena Delivery Service

Overview
Special delivery services for arenas and similar venues.
Competitiveness
Specialized delivery system close to venues
Customers
  • Sports Teams
  • Event Organizers
  • Venue Operators
Products
  • Seat-Direct Food Delivery
  • Event-Specific Platform

Mobile Delivery Platform

Overview
Optimized delivery platform connecting delivery workers and partner stores.
Competitiveness
Flexible delivery system centered on contract workers
Customers
  • Individual Delivery Workers
  • Delivery Partners
  • Partner Stores
Products
  • Delivery Worker Management System
  • Delivery Matching Service

Advertising and Marketing Support

Overview
Marketing services to support customer attraction for partner stores.
Competitiveness
Extensive customer touchpoints via LINE Group collaboration
Customers
  • Dining Stores
  • Ad Agencies
  • Marketing Firms
Products
  • Store Ad Planning
  • Promotion Support
  • User Data Analysis

System Provision and IT Consulting

Overview
Services to streamline delivery operations with advanced IT.
Competitiveness
High reliability from AWS infrastructure
Customers
  • Partner Stores
  • Partner Companies
  • Group Companies
Products
  • Delivery Management System
  • Sharing Delivery IT Infrastructure
  • Cloud Services

Payment Service Integration

Overview
Safe and convenient diverse payment options.
Competitiveness
Integration with LINE Pay and Amazon Pay
Customers
  • Partner Stores
  • Consumers
  • Payment Providers
Products
  • Online Payment Service
  • LINE Pay Integration
  • Credit Card Payments

Logistics Sharing Platform

Overview
Logistics sharing service supporting stores without delivery.
Competitiveness
Nationwide full-coverage sharing network
Customers
  • Small Restaurants
  • Delivery Companies
  • Local Stores
Products
  • Sharing Delivery Service
  • Logistics Resource Sharing System

Corporate and Group Catering Service

Overview
Diverse bento delivery services for corporate customers.
Competitiveness
Flexible operations for large orders
Customers
  • Corporate Event Organizers
  • Schools and Groups
  • Public Institutions
Products
  • Bulk Order Bento Delivery
  • Event Catering

Overseas Expansion Support

Overview
Delivery support business in Asia such as Korea and China.
Competitiveness
Track record of collaboration with local commerce companies
Customers
  • Overseas Restaurant Openings
  • Overseas Restaurant Owners
  • Local Partners
Products
  • Overseas Delivery Platform
  • Local Delivery Support

Delivery Worker Welfare Services

Overview
Services aimed at improving delivery workers' working environment.
Competitiveness
Tailored to contract-based delivery system
Customers
  • Individual Delivery Workers
  • Partner Contractors
Products
  • Health Insurance Support
  • Business Insurance Provision
  • Training and Education Support

Data Analysis and Management Support

Overview
Provision of analysis tools to promote operational efficiency for partner stores.
Competitiveness
Real-time user data utilization
Customers
  • Partner Stores
  • Internal Management
  • Partner Companies
Products
  • Sales Data Analysis Tool
  • Market Trend Reports
  • Management Improvement Planning

Competitive Advantage

Strengths

  • One of Japan's largest partner store networks
  • Capital and business alliance with LINE Group
  • Provision of diverse delivery models
  • Robust sharing delivery infrastructure
  • Advanced tech base and real-time delivery management
  • Integration with multiple payment services
  • Expansion of event-specific delivery services
  • Utilization of rich customer data
  • Delivery coverage across all 47 prefectures
  • Flexible contract-based delivery workers
  • Rapid service expansion capability
  • Stable funding from major capital
  • Strong brand recognition
  • Abundant consumer services
  • Hybrid EC and real-world sales channels

Competitive Advantages

  • Differentiation from competitors via sharing delivery for stores without delivery
  • Access to massive customer base via LINE and Yahoo!
  • New market development through event-focused Arena Delivery
  • Flexible system operations and high availability via AWS
  • Broad needs coverage with diverse restaurant genres
  • Improved usability with abundant payment options
  • Optimization as delivery worker matching platform
  • Successful ad expense efficiency leading to profit improvement
  • Stable management base and collaboration benefits from major capital
  • Enhanced customer satisfaction with real-time delivery info
  • Efficiency via diverse delivery methods (motorcycles, bicycles, light cargo vans)
  • Nationwide coverage including regional demand
  • Revenue diversification through business multi-angle
  • High convenience of smartphone app-centric service
  • Clear long-term service expansion strategy

Threats

  • Labor issues for delivery workers and regulatory changes
  • Profit pressure from intensifying price competition
  • Rise of other delivery services and increasing competition
  • Risk of increased system investment due to tech innovation
  • Market fragmentation from new entrants
  • Fluctuations in customer demand and economic impact on dining out
  • Post-COVID demand contraction risk
  • Increased operational costs from strengthened personal data protection laws
  • Risk of logistics network disruption from natural disasters
  • Rising customer acquisition costs from plateauing ad effectiveness
  • Growth slowdown from market maturity
  • Challenges in overseas entry due to regulations and cultural differences

Innovations

2022: Full migration to AWS cloud system

Overview
Migrated existing systems to Amazon Web Services for flexible operations.
Impact
Improved system uptime and scalability

2021: Integration with LINE Delima

Overview
Integrated services within the group to expand customer base and orders.
Impact
Achieved user growth and operational efficiency

2020: Nationwide rollout of Sharing Delivery

Overview
Enabled delivery for stores without networks, expanding the network.
Impact
Significant increase in partner stores and deliveries

2022: Launch of Yahoo! Mart by ASKUL

Overview
Entered quick commerce for daily goods, creating new markets.
Impact
Strengthened revenue base in online supermarket sector

2023: Introduction of variable delivery fees

Overview
Implemented fee structure review to enhance price competitiveness.
Impact
Contributes to maintaining customer satisfaction and improving profitability

Sustainability

  • Promotion of delivery worker working environment improvements
  • Eco-friendly material upgrades to reduce environmental impact
  • Thorough paperless operations and digitalization promotion
  • Support for local expansion to revitalize regions
  • Efforts to promote electrification of delivery vehicles