Just Eat orders rose a third in 2021 to 1.1 billion
Fast food delivery giant Just Eat Takeaway saw orders jump by a third in 2021. The group said its total orders surged to 1.1 billion last year.
In the fourth quarter, the takeaway giant reported orders of 274 million, although this was lower than expected in financial markets.
Just Eat also revealed its gross transaction value (GTV) was €28.2bn (£23,5bn) for the full year of 2021, representing an increase of 31 percent compared with 2020.
The UK and Ireland was Just Eat’s fastest-growing segment for both the quarter and the year.
Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown, comments: ‘’There is a tight pack of competitors jostling for position in the delivery sector, but Just Eat Takeaway appears to be gaining more ground on its rivals in key markets like the UK.
“The 1.1 billion orders in 2021, an increase of 33%, is no mean feat, given that 2020 was the year of the lockdowns when consumers had little option but to order in if they were fed up with yet another shift in the domestic kitchen.
“The investment following the merger of Just Eat and Takeaway.com and the acquisition of Grubhub is now paying off and there should be the prospect of continued growth ahead with more restaurants being signed up, offering more choice, particularly in the lucrative New York market.
“Just Eat Takeaway’s share price slipped in early trading as the company announced significant investment in its London operations in a bid to improve profitability. That increase in expenditure, while growth in orders appears to slow a little in the fourth quarter compared to the full-year picture, may have made some investors temporarily nervous, but it seems the overall picture, showing Just Eat riding high on a wave of demand for takeaways, has calmed any jitters with the stock up by almost 4% in the first few hours of trading.
“It had already committed to phasing out gig economy contracts and employing couriers instead, recently signing a contract with Spanish unions for better hourly rates, and holiday provision, so it seems more immune to concerns about the shake-up in EU labour laws than its rivals.
“There are still headwinds which could slow growth, not least the income squeeze that is set to get tighter in so many economies, which could lead to fewer orders of expensive takeouts. But with spokes in the Just Eat wheel now touching the convenience sector with deals signed with Asda and One Stop in the UK and 7-Eleven in the US, it should make for a less bumpy road ahead, particularly with potentially more tie-ups to come.’’