The market for food delivery has grown exponentially since the onset of the coronavirus last year. In 2019, the food delivery sector was valued at around US$107.44bn and had continued to increase since then. JustEat is pushing further with its food delivery business, with the acquisition of a Slovakian business with a similar working model.
Businesses with Similar Endeavours
The Slovakian company, Bistro.sk provides a delivery service similar to that of JustEat. With its customer base of 400,000 customers and 2,000 restaurants onboard, the company provides convenient food delivery through online orders. Joerg Gerbig, chief operating officer of Just Eat Takeaway, has discussed how the acquisition will boost the company’s profitability. “With the acquisition of Bistro.sk, we are adding a profitable and highly complementary online food delivery platform to our geographical footprint,” says Gerbig.
“The business has strong foundations we can build on: a number one position in online food delivery1, market-leading top-of-mind brand awareness and attractive consumer cohorts. We look forward to growing the business.”
Bistro.sk is expected to take on the global brand identity of JustEat, which was announced as the company released its delivery order growth - a 733% increase compared to the same period last year. The company has also seen significant global growth in the last quarter due to the success of a previous acquisition.
In June 2021, the company announced the completion of its other acquisition, GrubHub, which is another online food delivery service similar to JustEat. This was a very lucrative expansion for the company - as shown by its growth - and certainly a necessary step to compete with Deliveroo, which has significant backing from one of the largest technology, ecommerce and distribution companies, Amazon. GrubHub has benefitted from a 51% growth in orders in the last two quarters, while JustEat has received 61% growth.