Just Eat given green light for Hungry House takeover
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Just Eat given green light for Hungry House takeover

Once upon a time, Just Eat and Hungry House were the two biggest online takeaway sites in the UK. At that point, a merger between the two would have been unthinkable – a clear infringement of anti-trust regulations. However, in the last few years, everything’s changed. Now you have Deliveroo, UberEats, and Amazon all jostling for market share. And, thanks to a recent ruling by the Competition and Markets Authority (CMA), the door is now open for Just Eat to gobble up its smaller rival.

Just Eat’s share price has risen by 38% year to date

just eat2011

SOURCE: Yahoo Finance

With extra players in the market, regulators don’t see a threat in Just Eat’s acquisition of Hungry House – and, frankly, without the merger, it is not clear that Hungry House would have survived on its own. Unlike Just Eat, the smaller company’s most recent quarterly figures were weak.

Just Eat and Hungry House are both go-betweens for delivery drivers and restaurants, and in this, their business models differ from their competitors. UberEats and the others run their own delivery service themselves – something Just Eat is currently experimenting with.

Even with the added market share and network that Hungry House will contribute to Just Eat’s business, it will have its work cut out for it. However, it is the most experienced player in the UK’s online takeaway delivery space, and it’s no stranger to innovation – that means its not time to count it out yet!

Disclosure

Dominion holds Just Eat in its Global Trends Managed Fund.


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