Just Eat Takeaway orders grow for fourth consecutive quarter
Just Eat Takeaway's quarterly order growth accelerated for the fourth consecutive quarter, it announced on Tuesday, with the company processing 200 million orders in the first quarter of 2021, representing a 79% increase year-on-year.
The FTSE 100 company said gross merchandise value totalled €4.5bn (£3.89bn) for the period, up 89% on a constant currency basis compared with the first quarter of 2020.
Marketplace and delivery contributed almost equally to order growth, with the UK being the fastest-growing segment and the company's main growth driver.
Just Eat UK processed 64 million orders in the first quarter, up 96% compared with the same period of 2020.
New partnerships were signed with brands including Leon, Tortilla and Chipotle, as well as coffee chains Starbucks and Costa.
Delivery order growth was 695% year-on-year, which the board said was “multiple times faster” than the growth rate of its UK competitors, adding that in London, Just Eat achieved triple digit order growth.
In the first week of April, the businesses in Denmark and Norway were successfully migrated to Just Eat Takeaway's continental European IT platform, which the company said would allow for more efficient delivery operations.
The roll-out of the employed delivery model accelerated across Europe, including expanded London coverage and a Birmingham roll-out in the UK, and expansion to Lyon, Bordeaux and Toulouse in France.
In Italy, Just Eat was the first food delivery company to sign a collective bargaining agreement with the largest unions for the employment of its couriers.
To capitalise on the strong momentum from its investment programme, Just Eat Takeaway said it would continue to invest heavily and prioritise market share over adjusted EBITDA.
As it said in its full-year results, it was expecting further order growth acceleration for 2021 compared with 2020.
Subject to the satisfaction of conditions, including approval from authorities, the company’s acquisition of Grubhub was expected to complete in the first half.
“The first quarter of 2021 marks our fourth consecutive quarter of order growth acceleration,” said chief executive officer Jitse Groen.
“Our fastest growing segment was the United Kingdom, and we are especially pleased with the roll-out of our UK delivery network, which has reached an impressive 695% order growth rate year-on-year.
“We are also very proud of the acceleration in two of our highly profitable markets, with 77% order growth in Germany and 53% in the Netherlands.”
At 0832 BST, shares in Just Eat Takeaway were up 2.16% at 7,513p.