This isn’t yet confirmed but assuming it is, it looks unlikely that Uber will acquire Deliveroo now. Maybe they stand a chance of competing with Uber now.
Have tens of thousands of pounds worth of shares in a competitor.
Not looking forward to the market opening tomorrow
Justeat? Or someone else?
Yup, that’s the one haha
10% down. Could have been worse.
Yeah, they were already at a pretty low point though too
I’d have thought they would have been doing okay, but obviously not, Amazon really are kicking on and expanding at the moment. They’ve also signed up with Next (I think) so customers can collect parcels from their stores.
Isn’t Just Eat expanding their own delivery network instead of relying on the local restraunts for deliveries?
Correct, they are the guys testing robot deliveries in the states.
The big difference is Just Eat is the lower end of take away, while Deliveroo is great it’s more expensive and has a different audience. Just Eat is more geared towards cheaper local takeouts rather than bigger brands and chains.
They do cross paths though. I think Uber Eats is closer to Deliveroo than Just Eat in my view.
Edit: found the link
Yep Just Eat have been working with Starship for robot deliveries (Starship also work with Tesco, Co-op, others).
Just Eat started as a takeaway marketplace, like Delivery Hero (Germany) and Takeaway (Netherlands), but the overlap between JE and food delivery cos like Deliveroo is obviously big now. Most of them seem to have increasing marketing costs to acquire customers so it’s seen a “scale wins” space.
I don’t know how Amazon Restaurants did, but haven’t heard much of late, which sounds like investing in or buying Deliveroo is for Amzn a better route to the same goal. Maybe a bit like the LoveFilm investment and eventual acquisition in 200x.
The thing is though, doing delivery is expensive. Marketplace is very profitable, but as soon as you have to start sending drivers everywhere for a small delivery fee it’ll start cutting into the profits.
Delivery is expensive, but the Deliveroo charges are ridiculously high. I looked into doing it for one of my places (in 2018). Onboarding/Listing fee was £480+VAT, and then 35% of every order’s value. I honestly don’t know how this is viable for most restaurants, apart from those who can take a hit because they are building a brand, or those offering (primarily) menu items with high gross profit margins (ie pizza). You are not allowed to inflate your dine in prices for the delivery platform.
The only way round this is to create a dark kitchen - ie. A venue runs a more expensive version of their menu, under a different name, for the Deliveroo platform - or an operator just rents a kitchen and exclusively targets Deliveroo/Uber eats (no costs associated with dine in customers/massive premises overheads).
You say that JustEat is at the lower end of the market compared to Devliveroo (which is correct).
But I’ve been seeing more and more standard take-aways use Deliveroo now, they even deliver KFC!
Just Eat do all the big chains too KFC, Burger King, Subway, Pizza Express, GBK etc.
Just glanced at the Money Dashboard pitch deck and it has actual data from it’s users use of Deliveroo vs Just Eat (page 14 pitch deck), which is pretty interesting. Essentially it helps to confirm the view that they have different customers with Deliveroo focusing on the higher end part of the market who earn more, spend more and order more frequently.
Since Deliveroo came about I no longer use JE, but I am invested in it as I think there will be plenty of growth in this space as well as reductions in costs as they get increased scale over the next 5 years. I sense Deliveroo is a better business model (with higher margins), faster growth and will come out on top. It’s unfortunate you can’t invest in it!
Deliveroo make a loss, Just Eat would have higher margins.
I was thinking gross margin, which Deliveroo would reinvest into advertising/growth, but could be wrong…