Just Eat orders surge by 58 million in first half but investment splurge hits bottom line
Written by Hit Music Radio News on 17/08/2021
Just Eat orders in the UK rose to 135 million in the first six months of this year as it linked up with more restaurant brands and boosted marketing including through a Euro 2020 sponsorship deal.
The takeaway platform said the number of orders was up by 58 million, or 76%, compared with the same period in 2020.
Revenues for the UK were up by 82% to €552m and for the wider Just Eat Takeaway group – including brands in Europe and the US – they rose by 47% to €2.6bn.
But pre-tax losses widened to €395m compared with €26m a year ago partly thanks to its marketing splurge and the cost of seeing more of its couriers become “employed” workers rather than being on self-employed gig economy arrangements.
Chief executive Jitse Groen said the group had “continued to invest significantly”.
“Our consumer base, restaurant selection and order frequency have strongly increased, which will lead to improved profitability going forward,” he said.
In the UK, customers ordered an average 3.2 times a month, up from 2.5 times a year ago.
The company cited the expansion of tie-ups with brands such as McDonald’s, Greggs and Pret A Manger as well as the addition of 90 further brand including Leon during the period.
It now connects customers to 58,000 restaurants in the UK, up from 50,000 at the start of the year.
But the increased investments meant the UK business swung into the red with a loss of €71m compared to a profit of €127m in the first half of 2020.
Shares in the Amsterdam-listed Just Eat Takeaway group, whose rivals include Uber Eats and Deliveroo, rose by 2% on the update.
Last week, Deliveroo reported that the value of orders on its platform more than doubled in the first half of the year with demand “resilient” even after restaurants reopened in the UK as coronavirus restrictions eased.
© Sky News 2020