Just Eat posts losses, despite record revenues

Just Eat has reported pre-tax losses of €147 million, a rise of 67 per cent year-on-year, despite its revenues increasing 54 per cent to €2.4 billion.

Just Eat has been pursuing a strategy of subsidising deliveries to beat stiff competition from Uber and Deliveroo, as the pandemic has boosted the UK food delivery market.

This puts Just Eat, the UK’s largest food delivery service by market share, in a similar financial situation to rival Deliveroo.

The rival food delivery service posted a 54 per cent growth in net sales to £1.2 billion but losses of £224 million in 2020, ahead of their record setting planned initial public offering (IPO).

Just Eat increased marketing spending 158 per cent to €369 million in 2020 and said it expected more increases in order growth during 2021, despite predicting that the lockdown regulations which fuelled the market will loosen soon.

The food delivery giant is awaiting to hear whether its $7.3 billion acquisition of US food delivery company Grubhub, announced in June 2020, will receive regulatory approval.

Jitse Groen, chief executive at Just Eat, said: "2020 was an exceptional year for Just Eat Takeaway.com.”

"This (the pandemic) brought unprecedented challenges to our restaurants, consumers, as well as to our organisation and staff, but it also created tailwinds for our business.”

"In the second half of the year, we increased our investments into the legacy Just Eat business significantly, building on our position as one of the largest food delivery companies in the world.”

He added: "Our revenue grew 54 per cent in 2020, and we expect a further acceleration of our order growth in 2021 compared with last year."

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