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Highlights
- Just Eat Takeaway.com has entered the grocery market in the UK by partnering with supermarket chain operator Asda.
- In the third quarter of 2021, the company reported a 25% increase in orders compared to the same period of 2020.
Food delivery service provider, Just Eat Takeaway.com (LON: JET) has entered the grocery market in the United Kingdom by partnering with supermarket chain operator Asda. The new partnership will begin from January 2022, starting with five Asda stores. Just Eats UK customers will be able to order over 1000 grocery items through its platform.
Investors have been waiting for this development for a while as the company has been slow with its entry into the grocery delivery segment compared to its rivals. Its competitor Uber and Deliveroo, already have a similar partnership with Waitrose, Sainsbury's, Morrisons and other major supermarket chains.
The deal
Just Eat was already delivering pizzas and meals on behalf of Asda Kitchen, which operates at different locations. The new partnership further extends the existing relationship with ASDA. In US it has similar partnership with supermarket chains 7-Eleven apart from Shell and Spar in other countries.
Just Eat Takeaway.com and its business update
Amsterdam-based company has a partnership with over 580,000 restaurants in different countries. The company mainly provides a wide variety of food choices to its customers and collaborates with restaurants for delivery services.
In the third quarter of 2021, the company reported a 25% increase in orders compared to the same period of 2020. It processed 266 million orders with a gross transaction value of €6.8 billion, up by 23%.
Germany was the fastest growing market for the company with 35% order growth, followed by the UK market. Just Eat UK business handled more than 200 million orders in the first three quarters of 2021.
The company has also acquired Bistro.sk, which has market leadership in the Slovakian market.
Stock price performance
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The company’s stock currently trades at GBX 3,807.50, down by 1.88% on 17 December 2021 at 10:10 am GMT+1, with a market cap of £8,250 million. The stock price is trading very near to the 52-week low of GBX 3,759.
Bottomline
Just Eat is rapidly expanding its operations in the US and European countries. The company has been growing its business through organic growth and the acquisition of similar segment companies.
The new partnership with the supermarket chain is expected to benefit the business growth of the company, as its reach now expands to almost 95 per cent of the UK through its more than 60,000 restaurant partners.
