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Could Just Eat Make Through Pressures From its Competitors?
By Team B2(B)
– Rameera, Zhichao Hou(Richard),Malik,Chole and Salome
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Table of Contents:
1. Executive Summary————————————————3
2. History of Just Eat————————————————–3
3. The Market
3.1 Introduction————————————-—————-4
3.2 Key Products—————————————————-4
3.3 Customers——————————————————-4
3.4 Competitors—————————————————–4
4. Financial Data ——————————————————6
5. Business Model Canvas—————————————–—7
6. Porter’s Five Forces Analysis
6.1 Introduction ——————————————————-9
6.2 Bargaining power of buyers ———————————9
6.3 Bargaining power of suppliers——————————-9
6.4 Threats to new entry——————————————-9
6.5 Threats of substitutes—————————————–10
6.6 Intensity of Rivalry——————————————–10
7. Conclusion———————————————————-10
8. Reference———————————————————-—10
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Executive Summary:
The main purposes of this report is to analyse Just Eat from the point of view of the current
pressures on it for change, how is Just Eat responding to these pressures and whether Just Eat
is a promising company. To address these questions, the report has been written from different
perspectives: general history, the market background with key product and competitors,
financial date overview, Business Model Canvas and Five porter’s forces analysis.
Just Eat is a leading online and mobile broker for takeaway food in the world, operating a
marketplace where customers can order and pay for food easily and securely. These customers
who search for local restaurants can get access to the partner restaurants which sign up with
Just Eat. They can place orders via official website or mobile app and wait for conformations
from the restaurants. Once the food prepared, the food will be delivered by restaurant or
collected by the consumer.
The market which Just Eat targets at is where e-commerce is well established and there are a
number of highly fragmented takeaway restaurants with few chains. After Just Eat was
established in Denmark, it had been internationally expanded to new territories such as the UK,
France, Spain and Brazil. Until now, in the UK, one of the most developed markets, the sales
of online orders have increased significantly owing to development of e-commerce and
penetration of smart phones, despite the huge competition from Deliveroo, Uber Eat and
Amazon Restaurant.
The financial statistic from Just Eat annual business annual report shows that Just Eat has
experienced a big growth over the past few years: including annual sales have gone up from
£10 million in 2009 to £157 million in 2014; the revenue of Just Eat achieved £247.6 million
and Underlying EBITDA was up 83% to £59.7 million in 2015 (Just Eat Annual Report and
Accounts, 2015).
From the examination of Business Model Canvas, Just Eat has built its quite stable business
model in terms of customer relationships and value propositions. Customers are attracted to
use Just Eat via high-profile advertising campaigns and digital marketing. At the same time,
Just Eat is also keeping offering highly qualitied service to customers with up to date menus
online and secure payment system. However, Just Eat does not provide a delivery service,
taking a risk of being eroded by Deliveroo which has its own delivery fleet. Also Porter’s Five
Forces analyse the competitiveness of the market where Just Eat operates in. All in all, Just
Eat is an innovative and promising company in the long term if they can handle these possible
pressures.
History of Just Eat:
• 2000: Just Eat was founded by Jesper Bunch.
• 2001: Established in Denmark.
• 2006: Launched in the UK
• 2007: International expansion started from the UK to Netherland, India and
Switzerland.
• 2009: More than 1,000 restaurants on Just Eat network in Denmark.
• 2010: First mobile website came out.
• 2011: Launching of Eat.ch in Switzerland, ClickEat in Italy, RestauranteWeb in Brazil
and Alloresto in France. 10 millions orders placed and 50,000 reviews in the UK.
• 2012: Purchase of fillmybelly.com and SinDelantal and launching of the Don’t Cook
rebranding campaign; iPhone mobile app launched.
• 2013: Klaus Nyengaard, the group CEO, resigned and was replaced by David Buttress;
Android mobile app launched.
• 2014: Floated in the London Stock Exchange.
• 2015: Purchase of Menulog and Orderit.com.
(Just Eat Plc Annual Reports and Accounts, 2015)
Based on different time zones above, it is clear to see the growth and development in Just
Eat. Since the international expansion from the UK, Just Eat had cemented a leadership
position in takeaway food industry. With investing in first television marketing campaign, Just
Eat gradually built up its global brand proposition. In order to keep dynamic change in
customers’ tastes, innovation and technology then had been adopted to lay a foundation for the
significant growth of online ordering channel.
The Market:
Introduction:
Just Eat, the online food delivery marketplace, has emerged at the beginning of the 21st century.
It has been growing at a fast pace with the development of online services and mobile
applications. There is an increasing number of takeaway restaurants who want to sign up with
Just Eat to increase their sales. Nevertheless, more than 60% of takeaway orders are still done
on the phone, which demonstrate that there is remaining market for Just Eat to convert them to
using its platform.
Key products/services:
