The Just Eat Business Model: How a Delivery Company Works and Makes Money Share: White Label Fox Date Published 19 January 2023 Categories Blog Reading Time 8-Minute Read Just Eat offers the best food delivery services to its customers. Learn more about its business model Demand for online meal ordering and delivery has increased steadily in recent years. The sector experienced steady growth during the Covid pandemic when people were stuck at home and were forced to follow social distancing rules. Online food delivery giants such as Just Eat made it possible for restaurants to keep their businesses running and meet customers’ changing needs. If you’re thinking of developing a platform similar to those used by the delivery giants, having an insight into the Just Eat business model could help you gain a better understanding of how online orders and deliveries work and, ultimately, make money. Online food ordering has become popular all around the globe as consumers prefer comfort and want everything to be delivered to their place. In 2022 the global food delivery sector is estimated to have been worth around US$130.2 billion U.S. This number is projected to increase to US$223.7 billion by the end of 2027. The market is forecast to increase at a compound annual growth rate of 11% over the period considered. The food ordering and delivery sector have a bright future as more customers these days prefer to have sizzling meals delivered to their doorsteps whenever they want to enjoy them. If you are seeking an opportunity to become a part of a growing industry, White Label Fox can help you. An impressive ready-to-use Just Eat clone can help you launch a successful venture online and manage activities efficiently. What is Just Eat? Just Eat is an online meal delivery marketplace that connects customers with restaurants. The food ordering and delivery platform provides its service in more than 24 countries and has collaborated with around 580,000 local restaurants. Just Eat Takeaway focuses on local markets. It enables customers to search for restaurants and order food through the Just Eat website, iOS app, or Google app. The Just Eat Foundation, Funding History, and Success Story Operated by the Netherlands-based Just Eat Takeaway, Just Eat is an online meal ordering and delivery company. In 2001, it was launched as a separate company in Kolding, Denmark, and then headquartered in the U.K. The company acts as an intermediary between takeaway food outlets and customers. Just Eat provides its services in more than seven counties and enables consumers to search for local restaurants, place orders, and make payments online. It also enables customers to pick-up their orders or to have them delivered. Just Eat’s doorbell giveaway catered to ticketless Champion League fans. It was created in support of Just Eat Takeaways’ sponsorship of the Uefa Champions League. The stunt was captured for posterity by Liverpool fan and YouTuber Callum Airey. The global takeaway food market is expected to experience massive growth by 2029. Delivery giants, including JustEat, will have significant revenue and sales. Inspired by the success of Just Eat, many businesses are choosing to adopt similar business models. If you’re looking to automate your restaurant or food ordering and delivery business operations, take a quick look at our approach to understand how our branded solution helps you manage business activities from one place. The Just Eat Business Model: How a Delivery Company Caters to Customers’ Growing Needs Just Eat operates on a hybrid business model, meaning the company partners with restaurants to cater to the growing food delivery needs of its customers. They work together by entering into independent contracts to cater to customer orders. The success-based Just Eat business model ensures great cash flow and creates value for restaurants, shareholders, and other partners. The impressive Just Eat Takeaway business model has helped the company complete millions of orders effectively. In 2020, the company received nearly 588 million orders; this figure indicates a great increase from the 413 million orders made during previous years. Just Eat operates under distinct brand names in different countries – for example, Thuisbezorgd in the Netherlands and Lieferando in Germany. The majority of Just Eat’s customers in 2020 were from the United Kingdom and Germany. There are two interdependent customer segments in the marketplace-based Just Eat business model. These are: Customers: Those who want to order food from local restaurants. Restaurants: Local food stores and restaurants that want a large customer base and offer take-out. As an intermediate between restaurants and customers, Just Eat easily manages product sorting, discovery, orders, payment process, and everything related to delivery. Customers can explore menu items through the website and the company’s app. Let’s explore the customer segment to understand the Just Eat business model and to identify how it operates to satisfy the needs of food lovers. Value Proposition for Customers The company provides three key value propositions to customers, which are performance, customization, and convenience. Feature-rich online food ordering and the delivery app provide convenience to customers by enabling them to identify all the restaurants that are near them. Customers who love the take-out option can download the Just Eat app on their smart devices or can visit the company’s website to make an order. They can use multiple payment options to complete hassle-free payments and can also write reviews about the restaurant and delivery provider with ease. Value Proposition for Restaurants Just Eat provides four value propositions to restaurants and other food stores: accessibility, performance, decreased risk, and convenience. The delivery company improves the accessibility of restaurants by informing customers about them. This enables restaurants to get more customers and improve their business reach. Just Eat helps restaurants generate more orders. Customer Segmentation Just Eat follows a multi-faceted business model with two primary independent segments that are essential to its business. Customers Individuals who want to order Takeaway from a local restaurant Food lovers who want to enjoy tasty and delicious meals People with busy schedules who don’t have enough time to cook Restaurant Food stores that want to improve their business reach Grocery stores that want to expand their customer base Those who are expected to grow their business sales and profits Recently Just Eat revealed a list of six of Bradford’s best-reviewed takeaways. The food delivery brand focuses on developing great relationships with its customers. They are allowed to use the service through a leading platform with limited interactions with employees. Besides, it also enables restaurants to answer customers’ doubts over the phone and through email. Just Eat Revenue Model: How the Delivery Company Makes Money The effective Just Eat Takeaway business model makes it easier for an online platform to provide the best food ordering and delivery service. Just Eat Takeaway grew between 2015 and 2020. In 2015, its revenue amounted to around 77 million euros, which increased to 2 billion euros in 2020. The Dutch portal Thuisbezorgd saw a total value that was higher than that of its competitors Deliveroo and Hungry. Just Eat’s revenue increased by 33%, which was around €5.3B in 2021. Leading investors include Index Ventures, Rheingau Founders, Prime Ventures, Redpoint, Venrex, and 83North. You might be wondering about how Just Eat makes money through its revenue model. It earns revenue through delivery fees, restaurant fees, and other sources. Let’s explore the Just Eat revenue model in-depth. Restaurant Commissions Most of Just Eat Takeaways’ revenue comes from restaurants as the platform charges a commission for every order. Restaurant commissions differ depending on many factors, including restaurant location. Just Eat charges a 10 to 15% commission from restaurants. Delivery and Services Fees Just Eat also charges delivery fees and service fees from customers. Just Eat costs between zero to £4.50 per delivery. This charge depends on the distance covered in a delivery. Just Eat charges around £1.99 or more as an additional cost. Sponsored Placements Within the Platform Just Eat partners can boost their presence through promoted placements. It is an advertising platform that places a restaurant in the top five results on its website and app. The delivery giant also charges through the Cost Per Click (CPC) model, which means each time customers click on advertising, the restaurant has to pay a small commission. Interchange Fees Just Eat Takeaway partnered with Adyen in 2021, a payment processor that provides online payments for various tech businesses. The two introduced Takeaway Pay Card, which is a pre-funded debit card that workers can use for meal expenses. The card permits employees to buy goods and services at thousands of eateries and shops that accept Mastercard and Maestro. Get Your Food Delivery Platform Developed Today We hope this article helped you gain insight into the Just Eat business model and how the company makes money. If you are thinking of starting a similar business, White Label Fox can help you. Check out the information on online delivery service app pricing and other factors to make the smart choice for your delivery app. Our developers can deploy feature-rich food ordering and delivery apps as per your business requirements. Just specify your requirements, and we will do the rest. Contact us today to know how we can help you streamline your business process: sales@whitelabelfox.com.