Just Eat sees 43% revenue rise in 2018, commits to expansion
Fast food delivery service Just Eat has committed to an expansion of its courier service, as it searches for a new CEO and faces fresh competition from rivals like Deliveroo and Uber Eats. Just Eat remains the UK’s market leader in food delivery, but the sector is heating up, and a number of new “marketplace” products looking to connect hungry consumers with their favourite restaurants have entered the country recently.
Just Eat’s share price has increased by 18% so far this year
Source: Yahoo Finance
Just Eat has a couple of advantages over competitors, including knowledge of the UK market and lower fees. But, as the industry matures, that knowledge is becoming more diffuse around different companies. And big names in search of more cash have started offering lower-fee platforms elsewhere (Uber, in preparation for an Initial Public Offering, and Deliveroo in the hopes of fresh investment, have both started lower-cost platforms in other countries recently).
Just Eat, however is not taking this threat for granted. The company has invested £40 million in services across the UK, Canada, and Australia, experimenting with deliveries for huge players like Burger King and KFC. The company has stated in no uncertain terms that it’s looking to expand its delivery service in both the UK and Australia this year, and that it will use profit from its Canadian businesses to do so.
Interim boss Peter Duffy (who was recently ruled out in the company’s on-going quest to replace Peter Plumb as CEO) said: “we will have rolled delivery out by the end of the year to all the marketplaces that we want,” and added that Just Eat had not “felt an impact” after Deliveroo’s entrance to the UK. He continued: “the Just Eat marketplace is 30,000 restaurants in the UK… with sales teams that are going out to visit them on a regular basis. We’ve seen a number of players come into this space and fail.”
Last Wednesday, Just Eat released full-year financial results that met the Street’s expectations, and showed a revenue rise of 43%, year on year.
Dominion holds Just Eat in its Global Trends Managed Fund.
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