Just Eat Takeaway lived its record quarter in the first half of 2021, since then things have not been the same for the firm. In the middle of last year, the COVID-19 restrictions had practically disappeared and people already prefer to eat out before ordering at home. This and other factors, such as inflation, have brought to the food delivery company some losses of €3.48 billion in the first half of 2022. Still, Just Eat Takeaway don’t get discouraged and declares that you are much closer to making a profit and being profitable.
The delivery company argues that the losses come mainly from a new reality. The new consumption habits are stabilizing and now it is no longer a punctual trend. This has caused JET registers a loss in its orders of 7% compared to the previous year, but an equal gross billing due to the increase in prices. The food platform’s own sales reached 2,800 million euros, 7% more than the previous year. Although turnover and sales have grown, Just Eat Takeaway recorded a loss of €500 million on these meal deliveries.
Jitse Groen, CEO of Just Eat Takeaway.com states in the statement that “After a period of exceptional growth, Just Eat Takeaway.com is now twice as big as it was before the pandemic. Although this growth has required significant investment, we have continued to focus on executing our strategy to build and operate highly profitable food delivery businesses. Our three largest segments, which represent 90% of our gross transaction value, had positive adjusted EBITDA in the second quarter of 2022. Our path to profitability is accelerating and we expect to continue to materially improve our EBITDA Tight in the second half of this year and be positive Adjusted EBITDA at Group level in 2023.«
They sign an agreement with Amazon, fire their director of operations and grow their competition with Globo
The last months of Just Eat Takeaway.com they have not gone unnoticed. Above all, because a couple of weeks ago they signed a collaboration agreement with Amazon in the United States. This will allow Amazon Prime members in the United States to sign up for Grubhub+ for free for one year and access unlimited $0 delivery rates at thousands of restaurants on Grubhub throughout the year.
Amazon will own 2% of Grubhub’s shares and an additional 13% of shares conditional on the deal bringing Grubhub enough customers. This would be the solution to your problem, since a few months ago the Just Eat Takeaway.com board, according to CNBC, commented that had intentions to sell Grubhub; acquired in mid-2021 to grow its business in the United States. The decision would have been made when the investor Cat Rock Capital asked Just Eat Takeaway.com to sell Grubhub to focus again on business in Europe and thus try to solve the fall in the shares.
To this sale controversy must be added the one caused by the sudden dismissal of its director of operations at the beginning of 2022. As it became known, this dismissal would have been caused by alleged misbehavior at a staff party. On August 3, the company communicated his re-election.
Nor can we forget the launch of its new line of business in the food sector to bring food from supermarkets to its customers. This has been possible thanks to an alliance with Gorillas, which will allow you to use their establishments in various countries. In this way, the company will be able to start competing at the same level as Globo, its biggest rival.
We will have to wait until the end of the year to find out if these movements will finally allow Just Eat Takeaway be profitable in 2023.