Japanese telecommunications company KDDI will discontinue its food-delivery service, known as "menu," on Sept. 30, 2024 [2].
The closure signals the difficulty of maintaining market share in Japan's crowded delivery sector, where aggressive pricing from dominant players has marginalized smaller platforms.
KDDI launched the "menu" service in 2019 [1]. For several years, the platform operated as part of the company's effort to diversify its digital services beyond traditional telecommunications. However, the company said that intensifying competition in the nationwide food-delivery market made the service less viable [2].
Market dynamics shifted as competitors began offering free delivery and reduced fees to attract users [2]. This trend forced providers to absorb higher operational costs to remain competitive. According to reports, Uber Eats and Demae-kan have emerged as the leading services in the Japanese market [1].
The struggle for viability is not unique to KDDI. Other international players have also found the Japanese market challenging. The foreign service Wolt withdrew from Japan in March 2024 [1].
Industry analysts note that the high cost of delivery logistics, combined with a consumer preference for low or zero delivery fees, has created a high barrier to profitability. By exiting the market, KDDI avoids further losses in a sector where scale is the primary driver of success.
Users of the "menu" platform have until the end of September to complete their transactions before the service officially terminates [2].
“KDDI will discontinue its food-delivery service, known as "menu," on Sept. 30, 2024.”
The exit of KDDI's 'menu' and the previous withdrawal of Wolt suggest a consolidation phase in Japan's food-delivery industry. As the market matures, the 'burn rate' required to compete with giants like Uber Eats becomes unsustainable for firms without a dominant logistics network. This trend indicates that the Japanese market is shifting from a period of rapid expansion to one defined by a few dominant platforms capable of absorbing the costs of free-delivery incentives.
