Just Eat Takeaway has experienced a decline in orders across all its markets, as revealed in a recent trading update for the third quarter of 2024.
- Orders dropped globally by 6% to 211.1 million, with significant reductions noted in southern Europe and Australia and New Zealand, where orders fell by 14%.
- Despite the decline in orders, gross transaction value (GTV) has shown slight growth in key markets such as the UK, Ireland, and Northern Europe.
- The company’s strategic focus on diversification through new partnerships in grocery, pharmacy, and wellness is aimed at driving growth.
- Cost reduction efforts, including job cuts and operational efficiencies, are part of Just Eat’s plan to improve financial outcomes.
In its latest trading update, Just Eat Takeaway reported a notable 6% decrease in global orders, totaling 211.1 million. This downturn was particularly pronounced in southern Europe and Australia and New Zealand, where orders plummeted by 14%.
Even as orders fell, the company managed to achieve slight growth in gross transaction value (GTV) within its primary markets, including the UK, Ireland, and Northern Europe. These regions account for approximately 60% of the company’s total orders, underscoring their significance to Just Eat’s operations.
The CEO of Just Eat Takeaway, Jitse Groen, emphasized the company’s progress across its strategic pillars, which are believed to be key to driving growth. “We made good progress across our key strategic pillars, which we believe will drive growth,” he stated. The introduction of new partnerships in sectors such as grocery, pharmacy, and wellness across multiple markets reflects this strategic direction.
Furthermore, cost reduction efforts have been central to Just Eat’s strategy. The company undertook significant measures, including selling its stake in South American firm iFood in 2022 and making substantial job cuts in 2023. This includes reclassifying couriers as independent contractors to reduce expenses, resulting in 1,700 delivery job losses.
Despite these challenges, the company remains optimistic about meeting its full-year guidance, with a forecasted adjusted EBITDA of around €450 million and an expected expansion in constant currency GTV growth excluding North America of 2% to 6% year-on-year. Shares in Just Eat Takeaway decreased by approximately 3% at market opening following the announcement.
Just Eat Takeaway remains committed to adapting its strategy to achieve profitability despite the current challenges in global order volume.
