Uber Eats introduction of robots underlines paradigm shift in Japanese food delivery space

The latest move by Uber Eats to introduce food deliveries using robots is a part of the foodservice industry’s wider response to Japan’s growing labor shortage issue, with its population shrinking and growing old. The initiative underlines the paradigm shift that is taking place in the Japanese food delivery space, according to GlobalData, a leading data and analytics company.

Neralla Rama Ravi Teja, Consumer Analyst at GlobalData, comments: “Uber Eats’ decision to bring its delivery robots follows the government’s decision in February 2023 to ease its traffic laws to allow autonomous delivery robots. The government’s decision was in response to a labor shortage in the transport sector in cities. The move is also aimed at helping the older population who are becoming increasingly isolated. Many of them reside in rural areas, without access to daily necessities.”

Mariko Kadosaka, Key Account Director, GlobalData Japan, adds: “Japan’s population has been on a declining trend over the past few years. During 2018–23, the population fell at a negative CAGR of 0.3%. In 2023, the number of people, including foreigners, dropped by a little less than 832,000, according to preliminary data from the health ministry. The number of births fell by 5.1%, exacerbating Japan’s struggle with its aging society. The share of the working population has been constantly declining, creating severe labor shortages for companies operating in Japan.”

Teja continues: “The proliferation of delivery robots is an extension of the growing inclination among consumers towards food delivery for their meals. According to GlobalData’s 2023 Q4 consumer survey for Japan, 29% of consumers describe their spending on food delivery as very high or quite high. Among consumers aged 18–24 years, this percentage climbed to 58%^*. These numbers underline the general shift towards ecommerce and home delivery in Japan and globally in the wake of the COVID-19 pandemic.”

Teja concludes: “Even though the initiative looks progressive on paper, the increasing role of technology in food delivery is likely to attract backlash from some corners. Given that Japan is renowned for its specific rituals associated with each occasion, there can be social backlash. In addition, there will be concerns over collisions with pedestrians. The innovation is also likely to spur opposition from gig workers, who have already been struggling with the country’s declining real wages and inflation. According to the Labor Ministry, real wages in Japan fell by 2.5% in 2023, registering the steepest decline since 2014. The figure fell by 1.9% annually in December 2023 and by 2.5% in November 2023.”

*GlobalData Q4 2023 Consumer Survey – Japan, with 501 respondents, published in December 2023