Just Eat Takeaway.com NV (TKWY)

June 19, 2024

The HUGE food delivery service you havent heard of. Let us end that!!!



Just Eat Takeaway.com (JET) is a leading global online food delivery marketplace, connecting nearly 100 million consumers with 634 thousand local partners through their apps and websites, and with leading positions in attractive markets.

As per 31 December 2021, Just Eat Takeaway.com operated in 23 markets divided in four reporting segments:

  1. North America (Canada and the United States) 41% Gross Transaction Value (GTV)
  2. Northern Europe (Austria, Belgium, Denmark, Germany, Luxembourg, Norway, Poland, Switzerland, Slovakia and the Netherlands) 27% GTV
  3. United Kingdom, Ireland 24% GTV
  4. Southern Europe, Australia & New Zealand (Australia, Bulgaria, France, Israel, Italy, New Zealand, Portugal, Romania and Spain) 9% GTV


* In addition, they operate through partnerships in Brazil and Colombia (iFood)



Grubhub See Amazon note below

Grubhub is one of the US largest online food delivery marketplaces and is currently composed of two different brands Grubhub and Seamless. The Canadian brand SkipTheDishes was one of the earliest Delivery-led marketplaces within online food delivery and has since grown to be the market leader in Canada. The segment represents 34% of total Just Eat Takeaway.com Orders.



The Northern Europe markets together make up 27% of Just Eat Takeaway.com Orders, with Germany being the largest market in terms of Orders and GTV. Lieferando.de brand is the largest and most recognised online food delivery marketplace in Germany, with consumer top-of-mind awareness of over 60% and extensive partner coverage reaching over 98% of the delivery areas of the German population. Growth in Germany amounted to 42% in 2021.



The segment achieved 289 million Orders in 2021, representing 27% of total Just Eat Takeaway.com orders, and a growth rate of 52% versus the previous year. The UK brand Just Eat achieved a significant milestone during the year, fulfilling its billionth order since launching in 2006.


The top-of-mind awareness (TOMA) was boosted by significant investments in marketing and partnerships, including the UEFA Euro 2020 football tournament and a new Christmas-themed advert leveraging a renowned Snoop Dogg collaboration.  In the UK a number of new international and national chain restaurant partnerships, such as Starbucks, Costa and LEON.



The segment is comprised of a number of markets at an earlier stage of their evolution, in terms of consumer penetration and operational scale, which require significant investment. The segment achieved strong growth during 2021, with Active Consumers growing by 8% to reach 13 million, and GTV growth of 38% to 2.8 billion.



You can see the numbers attached. Still loss-making.


Significant debt. Do not ignore this.


The share price is down close to 48% the past 5 years. What does this mean? I believe this is still an interesting company with a very pessimistic valuation and significant number of valuable assets with large customer bases.



JET partnered with Amazon in the United States through JET's subsidiary Grubhub. For Amazon can offer Grubhub to Amazon Prime members. Grubhub is one of only three food delivery platforms in the United States with enough scale, and so a good restaurant and delivery driver offering. Amazon can turn Grubhub into the market leader in food delivery through cheap customer acquisition by marketing Grubhub+ to its Amazon Prime members.

Just Eat Takeaway can show that Grubhub still has the platform, the scale to become a serious competitor of Uber Eats and DoorDash. Amazon can quantify the value of Grubhub+ to Amazon Prime and Amazon as a whole through churn analysis.


This sounds like a win-win partnership.



JET entered into an agreement whereby the Company is to sell its equity stake of approximately 33% in the iFood joint venture to Prosus in return for a cash consideration totalling up to 1.8 billion. This news sent the share price soaring 26% on the day a week ago (while I was busy writing).


Why is Prosus interested in iFood exactly? We are excited to continue to be a supportive and active partner for iFood as the company steps into its next phase of innovation and growth, Prosus Chief Executive Bob van Dijk said. Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood.



JET remains an interesting company with a very pessimistic valuation and significant number of valuable assets with large customer bases. A disposal of Grubhub to Amazon is a serious possibility and could be "two flies in one hit." JET's competitors need to focus on the US to compete with Amazon, and JET refinances the company to drive growth in its other markets.


Disclaimer: Writer owns no shares in JET at time of writing (yet). Nothing in this article should be seen as financial advice. Everything stated is for educational purposes. Only opinions are expressed.




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