Introduction to Just Eat
Just Eat is a global leader in the online food delivery market, revolutionizing the way people order food. With an extensive network of restaurant partners and a user-friendly platform, Just Eat has become a go-to choice for individuals seeking convenience and a wide variety of culinary options. Let’s take a closer look at the overview of Just Eat and its global presence.
Overview of Just Eat
Just Eat, now part of Just Eat Takeaway.com N.V., operates in 13 countries and serves over 26 million customers worldwide. It has established itself as a prominent online food delivery marketplace, connecting consumers with more than 150,000 restaurant partners. The platform provides a seamless ordering experience, enabling users to browse menus, place orders, and track deliveries with ease (Digital Daze).
With approximately 50 million active users globally as of June 2021, Just Eat Takeaway.com is the largest food delivery platform outside of China (Statista). The company’s dedication to customer satisfaction and technological innovation has contributed to its success in the highly competitive food delivery industry.
Global Presence and Market Share
Just Eat’s reach extends across multiple continents, solidifying its global presence in the online food delivery market. The company operates in countries such as the United Kingdom, Canada, Australia, France, Spain, and many more. Its expansive network of restaurant partners allows customers to access a diverse range of cuisines and dining options.
Just Eat Takeaway.com N.V., the parent company, reported approximately 87.1 million active customers in the third quarter of 2021. This impressive customer base reflects the trust and loyalty that Just Eat has garnered over the years (Just Eat Takeaway).
As the global food delivery market continues to grow, Just Eat has established itself as a key player in the industry. The market’s value has surpassed $150 billion, more than tripling since 2017. In the United States, the market has more than doubled during the COVID-19 pandemic, with the food delivery sector growing at a faster pace than the restaurant industry itself (McKinsey).
With its established market share and continuous expansion into new territories, Just Eat is well-positioned to capitalize on the growth potential and market opportunities in the online food delivery industry.
In the next sections, we will delve deeper into Just Eat’s business model, competitive landscape, SWOT analysis, performance, and its future outlook to gain a comprehensive understanding of this influential player in the online food delivery market.
Just Eat’s Business Model
Just Eat has established a strong business model that has contributed to its success in the online food ordering industry. Let’s explore the key elements of Just Eat’s business model, including its commission-based revenue model, integration with point-of-sale systems, and personalized recommendations for user engagement.
Commission-Based Revenue Model
A major component of Just Eat’s revenue model is based on a commission structure. Just Eat charges restaurants a commission for every order placed through its platform, creating a substantial revenue stream. This model aligns the interests of Just Eat and the restaurants, as the platform’s success is directly tied to the volume of orders generated for its partner restaurants.
By charging a commission, Just Eat provides a platform that allows restaurants to tap into a larger customer base and benefit from the convenience of online ordering. This mutually beneficial relationship has contributed to Just Eat’s growth and market dominance.
Integration with Point-of-Sale Systems
To enhance operational efficiency and streamline order processing, Just Eat integrates with various point-of-sale (POS) systems used by restaurants. This integration allows for seamless communication between the Just Eat platform and the restaurant’s POS system. It enables real-time order transmission, reducing the chances of errors and ensuring a smooth order fulfillment process.
By integrating with POS systems, Just Eat simplifies the order management process for restaurants. This integration also allows for accurate tracking of orders, enabling efficient coordination between the restaurant and the delivery service. Ultimately, this integration enhances the overall customer experience by minimizing delays and errors in order processing.
Personalized Recommendations and User Engagement
Just Eat leverages technology and data analytics to provide personalized recommendations to its customers. By analyzing user preferences, past orders, and browsing behavior, Just Eat offers tailored suggestions for restaurants and menu items that align with the user’s taste and preferences. This personalized approach increases user engagement and encourages repeat orders.
The ability to offer personalized recommendations is a key factor in maintaining user loyalty and driving customer satisfaction. By presenting users with relevant options and suggesting new restaurants or dishes they may enjoy, Just Eat enhances the overall user experience and increases order frequency.
Through its commission-based revenue model, integration with POS systems, and personalized recommendations, Just Eat has successfully established a robust and efficient business model in the online food ordering industry. These strategic elements, combined with continuous expansion and innovation, contribute to Just Eat’s market dominance and sustained growth in the highly competitive market.
Just Eat’s Competitive Landscape
In the rapidly evolving food delivery market, Just Eat faces competition from various players and subscription services. Understanding the competitive landscape is crucial to analyzing Just Eat’s position and strategic decisions. Let’s explore the growth of the food delivery market, major players in the industry, and the rise of subscription services.
Growth of the Food Delivery Market
The food delivery market has experienced remarkable growth in recent years, driven by convenience and changing consumer preferences. According to McKinsey, the global food delivery market is now worth over $150 billion, having more than tripled since 2017. The United States market more than doubled during the COVID-19 pandemic, following historical growth of 8%.
Major mature markets, including the US, witnessed significant expansion, growing two to four times between 2018 and 2021. In the US, the food delivery sector outpaced the restaurant industry’s growth rate, indicating a strong trend toward convenience, particularly among millennials and Gen Zers.
Major Players in the Market
Just Eat operates in a highly competitive market with several major players vying for market share. While the competitive landscape varies by region, some prominent players have a significant global presence. Examples include DoorDash, Uber Eats, Grubhub, Deliveroo, and Postmates. These companies have made substantial investments, fundraises, and acquisitions, reflecting the excitement and uncertainty in the industry (McKinsey).
Just Eat Takeaway.com, the parent company of Just Eat, made a notable acquisition by acquiring Grubhub for $7.3 billion. Such strategic moves highlight the intense competition and the quest for market dominance.
Subscription Services in the Industry
Subscription services have gained popularity in the food delivery industry. These services offer customers a range of benefits, such as free delivery, exclusive discounts, and access to a wide selection of partner restaurants. Companies like DoorDash, Uber Eats, and Just Eat have introduced subscription programs to attract and retain customers.
Subscription services provide a level of convenience and cost savings for frequent users. By paying a monthly or annual fee, subscribers can enjoy enhanced experiences and incentives. These programs have become a key strategy to build customer loyalty and increase order frequency.
Understanding the competitive landscape helps assess Just Eat’s positioning within the food delivery market. By monitoring industry trends, market share, and the impact of subscription services, Just Eat can adapt its strategies to stay competitive and meet the evolving demands of its target audience.
SWOT Analysis of Just Eat
Analyzing the strengths, weaknesses, opportunities, and threats (SWOT) of Just Eat provides valuable insights into the company’s position in the online food order industry.
Strengths of Just Eat
Just Eat possesses several strengths that contribute to its success in the market. These strengths include:
- Efficient and scalable technology platform: Just Eat’s robust technology platform enables seamless online food ordering and delivery, ensuring a positive user experience.
- Strong brand and online presence: With a well-established brand and a significant online presence, Just Eat has built trust and recognition among customers.
- Good relationships with restaurants: Just Eat has fostered strong relationships with a wide range of restaurants, allowing for a diverse selection of food options for customers.
- Experienced management team: Just Eat is supported by an experienced management team that possesses industry expertise and strategic vision.
- High market entry barriers: Just Eat benefits from high market entry barriers, making it challenging for new competitors to enter the online food order industry.
- Highly profitable business: Just Eat’s commission-based revenue model has proven to be highly profitable, contributing to its financial success.
- Robustly developed sales and distribution network: Just Eat has established a strong sales and distribution network, enabling efficient order fulfillment and delivery.
(Source: IPL.org)
Weaknesses of Just Eat
While Just Eat has numerous strengths, it also faces certain weaknesses that should be addressed:
- Heavy investment in research and development (R&D): Just Eat invests significant resources in R&D to enhance its technology platform and stay competitive. This investment can impact the company’s profitability in the short term.
- High marketing and communication costs: Just Eat incurs substantial expenses in marketing and communication efforts to attract and retain customers.
- Absence in certain cities: Just Eat may not be available in some cities, limiting its reach and potential customer base.
(Source: IPL.org)
Opportunities for Just Eat
Just Eat has several opportunities for growth and expansion in the online food order industry:
- Highly scalable model: Just Eat’s scalable model allows for growth across different countries and markets, presenting ample opportunities for expansion.
- Large continuously growing market: The global food delivery market is experiencing substantial growth, offering Just Eat a vast market to tap into.
- Potential increase in-market and out-of-market mergers and acquisitions (M&A): Just Eat can explore M&A opportunities to strengthen its market position and expand its offerings.
- Availability of venture capital: Just Eat can leverage the availability of venture capital to fund innovation, new initiatives, and market expansion.
(Source: IPL.org)
Threats to Just Eat
Just Eat faces various threats in the highly competitive online food order industry:
- Competitive market landscape: The food delivery market is characterized by intense competition, with numerous players vying for market share.
- Unprofitability in the industry: Despite the industry’s growth, many delivery platforms, including Just Eat, have struggled to achieve profitability due to cost-intensive operations and low margins.
- Consolidation and major investments: Consolidation within the industry, as demonstrated by Just Eat Takeaway.com’s acquisition of Grubhub for $7.3 billion, can pose challenges and intensify competition.
- Changing consumer preferences and demands: Shifting consumer preferences and demands, such as increased interest in subscription services or alternative food delivery options, can impact Just Eat’s market position.
(Source: McKinsey)
By understanding the SWOT analysis of Just Eat, stakeholders can gain valuable insights into the company’s strengths, weaknesses, opportunities, and threats. This analysis can inform strategic decision-making and help Just Eat navigate the dynamic and competitive online food order market.
Just Eat Takeaway.com Performance
To understand the performance of Just Eat Takeaway.com, it is essential to examine its financial highlights, order growth and expansion, as well as its competitive strategies.
Financial Highlights
Just Eat Takeaway.com reported impressive financial results, demonstrating its strong position in the online food delivery market. In 2021, the company experienced a substantial rise of 61% in full-year sales, amounting to €2.6 billion ($2.9 billion). This growth was primarily fueled by continued order growth, even as pandemic restrictions eased in the latter part of the year.
The number of orders at Just Eat Takeaway.com increased by 23% to 680 million in 2021, reflecting the continued strong momentum seen during the pandemic-driven period of lockdowns. These figures highlight the company’s ability to attract and retain a large customer base, contributing to its financial success.
Despite the increasing losses in its delivery business, Just Eat Takeaway.com remains optimistic about achieving profitability in 2023. The company has made strategic acquisitions and investments in growth areas such as quick commerce and grocery delivery services to expand its offerings and enhance its competitive edge.
Order Growth and Expansion
Just Eat Takeaway.com has demonstrated impressive order growth and expansion in recent years. In Q3 2021, the company witnessed a significant year-over-year order growth of 119%, with 283.7 million orders compared to 129.7 million orders in Q3 2020. This growth emphasizes the company’s ability to capture a larger share of the online food delivery market.
The company continues to show strong performance in key markets. In the third quarter of 2021, Just Eat Takeaway.com reported 68.7 million active customers in Germany, 14.4 million in the UK, 6.5 million in Canada, and 4.4 million in Australia. These figures demonstrate the company’s extensive reach and its ability to attract customers across multiple regions.
Just Eat Takeaway.com also reported a significant increase in gross merchandise value (GMV) in Q3 2021. The GMV amounted to €7.9 billion, indicating a 62% year-over-year increase from €4.9 billion in the same period of 2020 (Just Eat Takeaway). This growth highlights the company’s ability to generate substantial revenue through its online food delivery marketplace.
Competitive Strategies
To maintain its competitive edge in the food delivery market, Just Eat Takeaway.com has implemented various strategies. The company has focused on expanding its business and investing in growth opportunities. In 2022, Just Eat Takeaway.com projected an investment of €1 billion ($1.1 billion) across its various business units, aiming to capitalize on new opportunities and enhance its competitive positioning (BNN Bloomberg).
Just Eat Takeaway.com has also prioritized customer engagement and satisfaction. Through personalized recommendations and user engagement initiatives, the company aims to provide a seamless and tailored experience for its customers, enhancing their loyalty and driving repeat orders (just eat strategic analysis).
Furthermore, the company has integrated with point-of-sale systems to streamline the ordering and delivery process for its restaurant partners. This integration enhances efficiency and allows for seamless coordination between restaurants and delivery drivers, ensuring a smooth and timely delivery experience for customers.
By continuously investing in growth, optimizing its operations, and prioritizing customer experience, Just Eat Takeaway.com aims to stay competitive and further expand its presence in the online food delivery market.
In the next section, we will explore the future outlook for Just Eat Takeaway.com, including its growth potential, challenges, competition, and investment plans.
Future Outlook for Just Eat
As the food delivery market continues to evolve and expand, Just Eat faces both growth potential and challenges. Understanding the market opportunities, competition, and investment plans is crucial for assessing the future outlook of Just Eat.
Growth Potential and Market Opportunities
The global food delivery market has experienced significant growth, surpassing $150 billion and more than tripling since 2017, according to McKinsey. The COVID-19 pandemic further accelerated this growth, with the United States market more than doubling during the pandemic. The shift towards online food ordering and delivery is expected to remain a permanent fixture, as it became a lifeline for the struggling restaurant industry during lockdowns and physical-distancing requirements (McKinsey).
Just Eat has the opportunity to capitalize on this growth by expanding its market presence and catering to the increasing demand for food delivery services. With its established brand and global reach, Just Eat is well-positioned to tap into new markets and attract a wider customer base. The company can leverage its technological capabilities to enhance user experience, streamline operations, and further personalize recommendations to meet customer preferences.
Challenges and Competition
Despite the rapid growth in the food delivery market, profitability remains a challenge for delivery platforms, including Just Eat. The business is characterized as cost-intensive, low-margin, and scale-driven, which makes profitability a constant struggle (McKinsey). Just Eat needs to effectively manage operational costs while maintaining competitiveness in the market. This includes optimizing delivery logistics, managing commission rates, and continuously improving efficiency in order processing and delivery.
Competition within the food delivery industry is fierce, with major players vying for market share. Just Eat faces competition from other delivery platforms, including both established players and emerging startups. Differentiating itself through innovative features, superior service, and strategic partnerships will be crucial for Just Eat to maintain and expand its market position.
Investment and Expansion Plans
Just Eat Takeaway.com’s recent acquisition of Grubhub for $7.3 billion is a significant move that demonstrates the company’s commitment to strategic growth and consolidation within the food delivery industry. This acquisition expands Just Eat’s market presence and strengthens its competitive position, providing access to new customer segments and geographic markets.
In terms of expansion plans, Just Eat should focus on targeted market entry and expansion strategies to capitalize on emerging opportunities. This may involve partnering with local restaurants, expanding delivery coverage, and exploring new markets. Investing in technology and data analytics will enable Just Eat to improve operational efficiency, enhance the user experience, and drive customer loyalty.
By leveraging its strengths, addressing challenges, and making strategic investments, Just Eat can position itself for continued growth and success in the dynamic food delivery market.
Note: For a detailed analysis of Just Eat’s strengths, weaknesses, opportunities, and threats, refer to our article on Just Eat SWOT Analysis. For insights on the competitive landscape, refer to our article on Just Eat Competitive Analysis. To understand the market analysis, refer to our article on Just Eat Market Analysis. For strategic analysis, refer to our article on Just Eat Strategic Analysis.
