DELHY - Just Eat Takeaway.com: Growing Industry But High Uncertainty

2024-01-29 06:48:30 ET

Summary

• The food delivery industry has evolved considerably since 2020, with many companies going public and experiencing initial success followed by collapses.
• Just Eat is having great success in Northern Europe but is ceding market share to competitors in North America and Southern Europe.
• The food delivery industry has reached an early stage of maturity but there still remains much uncertainty about future profitability.
• This is the first article of three focused on the food delivery industry. In the next two articles, I will analyze Deliveroo and Delivery Hero.

Introduction

I don't like the food delivery industry very much. Since 2020, when the services offered by these companies proved to be essential, the industry has evolved considerably. Many delivery companies in the past few years have gone public, enjoying much success at first only to collapse miserably once they realized that the lockdown period was to be considered an exception (and also 0% interest rates). Just looking at the balance sheets with huge losses and their ability to burn liquidity with admirable speed has always deterred me from further analysis....

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