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Just Eat’s delivery business surges 600%

written by Bella Palmer
just-eat

Just Eat processed 179 million UK orders in 2020, with revenues 42% higher at £621 million after more restaurants used delivery services amid the lockdown

Just Eat piled the pressure on Deliveroo ahead of its rival's £7 billion stock market float by revealing it expects to grow UK market share this year.

The food delivery giant has been boosted by an 88% surge in UK orders in its online marketplace and a 600% surge in delivery business in the first two months of this year.

Amsterdam-based Just Eat already claims to be the UK market leader for processing online market orders but said its growth in logistics was now “multiple times” the rate of its competitors following partnerships with McDonald's and Greggs among others.

The company added today: Given recent trading and the investment programme, management expects to increase market share in the UK in 2021.

Just Eat processed 179 million UK orders in 2020, with revenues 42% higher at £621 million after more restaurants used delivery services amid the lockdown.

It has also stepped up pressure on Deliveroo by changing the way it employs gig economy workers by giving London couriers employment benefits and hourly salary instead of pay-per-job, ensuring increased security of income for staff for the first time.

Deliveroo this week moved towards a London stock market listing that could potentially value the business at £7 billion, even though it remains loss-making.

FTSE 100-listed Just Eat, which last year completed the takeover of GrubHub in the US, also recorded a loss of £129.3 million in today's 2020 results. Deliveroo lost £224 million.

Chief executive Jitse Groen wished Deliveroo rival Will Shu well with the flotation: I'm a fellow founder and know how important an IPO is to the business. We are quite a bit larger than Deliveroo and will do our best to compete with them.

Disclaimer:

The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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