🍽️ Drop in Orders
Just Eat Takeaway, the Dutch food delivery platform, saw a 6% drop in orders in Q3 2024. The total number of orders was 211.1M, with a particularly steep 11% drop in the U.S. This comes despite renewing its partnership with Amazon earlier this year. Globally, the gross transaction value of orders was $6.7B, falling below analyst expectations. Many consumers are cutting back on spending, which is affecting the food delivery industry as a whole.
📉 U.S. Struggles
The U.S. market continues to be a challenge for Just Eat Takeaway. The company has been looking to sell its U.S. subsidiary, Grubhub, since 2022, but has not found a buyer yet. The 11% drop in U.S. orders this quarter highlights the platform’s struggles in North America. Even with Amazon’s involvement, competition is stiff, and consumers are spending less on takeout in the face of rising costs.
📊 Stronger in Europe
While orders are falling globally, Just Eat Takeaway remains optimistic about its performance in Europe. Northern Europe, the U.K., and Ireland now make up 60% of the platform’s total orders. CEO Jitse Groen noted “positive momentum” in these regions, and management expects to see growth in transaction value between 2% and 6% for the full year, excluding North America.
📦 New Growth Areas
To counter the decline in meal deliveries, Just Eat Takeaway is expanding into new sectors. The company has announced partnerships in areas like groceries, pharmacies, and wellness services. These partnerships are seen as key to future growth. CEO Groen stated that the company expects an adjusted EBITDA of around $478M for 2024, as they continue to diversify their offerings.
Is meal delivery becoming less popular globally?
