Rakuten and Seiyu to partner in online grocery service

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Japanese online retail company Rakuten is partnering with Walmart-owned supermarket Seiyu to launch an online grocery service. Spokespeople from the companies say about 20,000 products will be available on the site, drawn from the Seiyu range, including fresh food. Orders will be fulfilled from stores, restricting the service – for now – to about 16 Japanese suburbs, however a warehouse has been opened near Tokyo to serve the capital.
“We can tap into Rakuten’s 99 million-strong membership base,” said Seiyu executive officer Tamae Takeda. “[Rakuten’s] advantage is in technology, so we can combine our strengths.”
The new online grocery service will compete with one launched by Amazon in April last year, as well as those offered by larger Japanese supermarket chains.
Seiyu and Rakuten plan to offer free delivery on orders over a set threshold, or $4 for those under it.
Questions & Answers
Q.Which areas will the new online grocery service initially cover?
Which areas will the new online grocery service initially cover?
Initially, the service will be restricted to approximately 16 Japanese suburbs, with orders fulfilled directly from stores. However, a new warehouse near Tokyo will serve the capital city.
Q.What is the delivery charge structure for the new service?
What is the delivery charge structure for the new service?
The companies plan to offer free delivery for orders that exceed a certain threshold. For orders falling below this threshold, a delivery fee of $4 will be applied.
Q.How many products will be available through this online grocery service?
How many products will be available through this online grocery service?
The new online grocery service will offer a selection of around 20,000 products. These products will be drawn from the existing range available at Seiyu supermarkets, including fresh food items.
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