Yahoo Finance Just Eat ups guidance after UK delivery orders soar 733% as it takes on Deliveroo and UberEats
JustEat Takeaway.com has upgraded growth guidance after seeing UK orders soar by 733% as the global food delivery giant takes on Deliveroo and UberEats.
The FTSE 100 firm, which trades as Just Eat in the UK, said in a trading statement that it saw first half group orders up 61% on the same period in 2020.
Orders grew by 733% UK-wide in the period, with triple-digit order growth in London. Bosses said they now expect more than 45% order growth in FY21, with gross group transaction value for the full year expected to reach €28 to €30 billion.
JustEat Takeaway.com former in 2019 when Takeaway.com bought British firm Just Eat. Last month it completed a major £5.75 billion takeover of US rival GrubHub, and now has shares in New York, Amsterdam and London.
The company revealed in January would take time to review its listing structure and determine "the optimal listing venues for the company's long-term future". It and said today that the review is ongoing and that no decision is expected before August.
CEO, Jitse Groen, said: "We have combined Just Eat Takeaway.com and Grubhub into one of the largest online food delivery companies in the world. The new combination grew 51% in terms of orders in the first half year.
"Adjusted EBITDA losses, mainly caused by US and Canadian fee caps and our investment programme, have now peaked. We therefore expect the Company to trend back to profitability going forward while retaining significant growth during the second half of the year."
Just Eat started off as a web “marketplace” platform where customers can see and order food from restaurants who then do the delivery themselves. More recently, following the likes of Deliveroo and Uber Eats, it has moved into running the delivery services logistics, too, and this year launched an agency worker model in the UK.
The firm is currently facing challengers in its key German market, and the Grubhub acquisition is eating cash.
"Intense competition and ongoing required investment spend continue to offer headwinds," interactive investor's Keith Bowman said.
Dan Thomas at Third Bridge added: "Food delivery platforms continue to see good order growth despite the UK opening up again."
Shares were down 3% on Thursday morning.
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