DoorDash (NYSE:DASH) is a long-distance runner, it appears, and the meals supply inventory is posting its fifth straight day of good points in Wednesday buying and selling — up 10% as of 11:30 a.m. EST. There is not any precise new information to clarify right now’s rise versus the earlier 4 days’ good points, nonetheless, and so it appears the catalyst is identical:
Extra particularly, DoorDash’s strongly rumored curiosity in expanding its operations into Japan. Late final week, Japan’s Nikkei Asia information service identified that DoorDash is attempting to recruit a basic supervisor to run operations in Japan. Queried for remark, DoorDash responded vaguely that “we’re at all times eager about methods to boost and scale our platform to serve extra communities [and] regularly assess growth alternatives, however there’s nothing to replace on at this second in time.”
However the easy truth of the matter is that DoorDash is trying not simply at “growth” usually, however at growth in Japan particularly.
And DoorDash’s timing could not be extra excellent. In Japan, 95% of eating places do not but do DoorDash-style supply to clients’ houses. But with COVID instances ramping up in Japan proper now, the federal government simply introduced expanded “state of emergency” restrictions on eating places and different companies.
Beforehand, solely Tokyo and three neighboring prefectures have been lined by the restrictions, which suggest that restaurants shut early whereas the disaster persists and that clients restrict nonessential journeys outdoors. In the present day, CNN stories that Japan has expanded these restrictions to seven extra prefectures, such that “a lot of Japan’s foremost island of Honshu” is now lined.
Whereas it isn’t identified how lengthy the restrictions will stay in impact, there’s already discuss of suspending the Tokyo Olympic Video games — scheduled to start in July — for a second 12 months. That means DoorDash could have loads of time to get its enterprise up and working because it serves a vital want in a time of pandemic.