Online Food Delivery is Still Highly Underpenetrated: Joris Wilton from Just Eat Takeaway.com
There is significant rise in the number of takeaway delivery services in recent years. According to you which are the factors bolstering this growth?
The main growth driver is shifting existing delivery orders from the phone to the website and app. We offer consumers the convenience of a large selection of local takeaway restaurants at their fingertips, user-friendly interfaces that allow the selection of a meal in a few clicks and multiple options for online payment.
Which restraints are hampering the growth of the market? What need to be done to overcome these issues?
The shift from offline to online food ordering is a relatively gradual shift. The decision to order food is impulse-driven and consumers typically reuse the service that they have used the previous time. In most cases today, that is still the phone. Online food delivery is still highly underpenetrated; in our key markets, penetration of adult population that use online food delivery services in the previous q12 months is around 10%, while we believe that approx. 70% of the adult population orders food at least once a year.
As all businesses are disturbed due to COVID-19 pandemic, how is Just Eat Takeaway.com dealing with the crisis? How are you implanting safety measures and policies to keep your employees safe? How much the takeaway delivery services are affected in the lockdown times?
In these uncertain and unprecedented times, our top priority has been the well-being of our staff, partner restaurants and consumers. Just Eat Takeaway.com took measures to limit the spread of the coronavirus by implementing contactless delivery for all orders and providing cleaning and hygiene equipment for couriers. Just Eat Takeaway.com is one of the few, and privileged, companies that has only modestly been affected by the crisis. After a temporary impact on our March orders, we have seen a quick recovery and in April and May we have seen a strong acceleration of order growth, clearly above pre-crisis order levels.
Which food/beverages items are preferred the most by customers? Are there any changes in the preferences due to lockdown?
The lockdown did not affect consumer preferences. The top 5 dishes are still 1. Pizza 2. Burger 3. Salad 4. Sushi 5. Pasta. Pizza Margherita is the most ordered menu item. One element to call out is that the average order value increased by approx. 10% across our markets during lockdown period, driven by more people that eat from one order. This is likely driven by a mix effect: less orders for one person in the office versus now working from home and ordering for a family.
As many millennials now prefer to order food online than going out, how do you predict the scenario of takeaway delivery services in coming five years? Will this trend hamper the conventional dine-in system of food and beverages industry?
We expect that consumer preferences will move towards more convenience. But this is not a zero-sum game, i.e. one additional delivery order does not cannibalize a meal at a dine-in restaurant. It mostly replaces cooking at home. Average order frequency for our returning active consumers is only 12x a year. A year has 365 days and people eat 2-3 times per day. We believe that delivery can accelerate the growth of dine-in restaurants as well, as delivery provides an efficient way to diversify a restaurant business and to be closer to your consumer.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.