|Bid||42.51 x 0|
|Ask||42.52 x 0|
|Day's Range||42.42 - 44.07|
|52 Week Range||27.48 - 48.79|
|Beta (3Y Monthly)||0.55|
|PE Ratio (TTM)||14.78|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||42.06|
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The U.K. competition regulator has started a review into Amazon.com Inc.’s bid to buy a slice of fast-growing food delivery startup Deliveroo, adding to the e-tailing giant’s antitrust woes around the globe.The Competition and Markets Authority said on its website Wednesday it’s investigating the purchase of rights and a minority shareholding in Roofoods Ltd., which does business under the Deliveroo brand. The first phase will wrap up by Dec. 11, it said.The investigation comes after the regulator said in July it had “reasonable grounds” to believe Amazon and Deliveroo, which operates a fleet of smartphone-navigated scooters and bicycles to deliver food from local restaurants, had either ceased to be separate operations or were close to merging. While CMA reviews into mergers are relatively common, it’s unusual for the regulator to examine acquisitions of minority stakes.A spokesman for Amazon declined to comment, while a representative for Deliveroo didn’t immediately return a message inquiring about the review.U.S. Democratic presidential contender Elizabeth Warren on Tuesday called out Amazon for running an online marketplace and competing with third-party sellers on the platform as the European Union’s competition czar investigates whether the company is shortchanging smaller merchants in that dual role. Amazon also faces separate antitrust scrutiny from the U.S. Federal Trade Commission and Justice Department.Cash InjectionIn May, Amazon said it would invest in a $575 million funding round to help the London-based startup expand its technology team and network after closing down its own food delivery business in the capital last year. U.K. food delivery has become fiercely competitive, and Deliveroo’s rivals include Just Eat Plc and Uber Technologies Inc.That rivalry has driven acquisition talk across the industry. Just Eat and Takeaway.com NV agreed in July to a 5 billion-pound ($6.4 billion) combination, less than six months after Takeaway.com spent about $1 billion for the German operations of rival Delivery Hero SE. Spanish food delivery startup Glovo has also drawn preliminary interest from Uber and Deliveroo in recent months, people familiar with the matter said previously.Deliveroo said this month that while global sales from its food-delivery business had increased 72% in 2018, profitability remained elusive. The company said it lost 232 million pounds last year compared to 199 million pounds a year earlier.Amazon has signaled its growing ambitions in the U.K. grocery market with Prime Now, which delivers in major British cities within two hours. It faces stiff domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that licenses its technology to the likes of Kroger Co. and aims to halve the Prime Now delivery time with a service called Zoom.(Adds Amazon’s response in fourth paragraph, background on acquisitions from sixth paragraph)\--With assistance from Stephanie Bodoni.To contact the reporters on this story: Hugo Miller in Geneva at firstname.lastname@example.org;Christopher Elser in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy Thomson, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Deliveroo’s battle with food delivery rivals is intensifying after the U.K.-based startup posted strong growth, but also an increase in losses.Global sales from its food-delivery business have increased 72% over the past year, reaching 476 million pounds ($583 million) for the year ended Dec. 31.Growth was driven by its international markets and the launch of a marketplace platform for restaurants with existing fleets of drivers to sell meals via the London-based startup’s app, it said in a statement Wednesday.Although sales grew, profitability is a way off. Deliveroo posted a pre-tax loss of 232 million pounds for the period, compared to 199 million pounds a year earlier.Deliveroo Chief Executive Officer Will Shu said he was optimistic about the company’s outlook, and said it “continued to invest heavily in expansion, technology and new products.”In May, Deliveroo said it had secured $575 million in funding led by Amazon.com Inc. and other investors, and would continue to expand in markets including the U.K., France, Italy, Spain and Dubai. But in August, it announced an abrupt retreat from Germany after more than four years, as an increasingly cut-throat competitive landscape piled pressure on the industry.The food delivery industry has been roiled by mergers of late. Just Eat Plc and Takeaway.com NV agreed in July to a 5 billion-pound combination, less than six months after Takeaway.com spent about $1 billion for the German operations of rival Delivery Hero SE. Spanish food delivery startup Glovo has also drawn preliminary interest from Uber and Deliveroo in recent months.Uber Eats and Deliveroo are currently battling for virtual restaurants, where eateries lease kitchen space to prepare food for couriers. With no dining rooms or wait staff, these outfits pop up where food delivery companies expect demand, and sell their meals through Uber Eats or Deliveroo’s app.Deliveroo has raised $1.53 billion, and was valued at $2 billion in a funding round in 2017. Over the next four years, the food-delivery business is estimated to increase 12% a year, to $76 billion in 2022, according to investment firm Cowen Inc.To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editor responsible for this story: Giles Turner at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Naspers Ltd.’s newly listed internet unit received an enthusiastic early response from investors, soaring on its trading debut to close a valuation discount to its biggest investment, Chinese tech giant Tencent Holdings Ltd.Prosus NV, as the new Amsterdam-listed company is known, jumped as much as 32% in early trading to value the business at about 125 billion euros ($138 billion). The group’s 31% stake in WeChat creator Tencent is worth about $131 billion, the result of a timely investment made almost two decades ago.The investor reaction is an early vindication of the strategy masterminded by Naspers Chief Executive Officer Bob van Dijk, who took the helm of the Cape Town-based company five years ago. His plan to carve out Prosus into a new listing in Amsterdam was designed to attract a more global investor base and realize more value, while weakening the group’s dominance over the Johannesburg stock exchange.The move to Euronext is “to facilitate our next phase of growth,” Van Dijk said in an interview with Bloomberg TV just after the market opened. Prosus’s classified-ads business is the largest in the world, while the group also sees fast expansion in internet payments, food delivery and online trading in second-hand goods, he said.While the discount to Tencent was all but wiped out, the firm is still trading below the sum of its parts when you add other assets, including shareholdings in Russia’s Mail.Ru Group Ltd. and Delivery Hero SE of Germany. Van Dijk’s next challenge will be to generate higher returns from those investments and prove that Prosus isn’t merely a proxy for holding Tencent stock.“Our next step will be to bed down and invest in our core business units,” Chief Financial Officer Basil Sgourdos said by phone.Shares in Prosus -- a Latin word meaning ‘forwards’ -- declined slightly after the early surge. The value as of 11:28 a.m. in Amsterdam was 121 billion euros, making it the third-largest publicly traded company in the Netherlands, behind Royal Dutch Shell Plc and Unilever NV. Its market value rivals that of Europe’s biggest tech company, Germany’s SAP SE.Naspers is retaining a 73% stake in Prosus, and will keep hold of South African businesses including the newspapers that form the basis of the company’s origins a century ago. Its stock rose in Johannesburg, trading 5.4% higher as of 11:28 a.m. local time.“Naspers has been looking to unlock value in the steep discount applied to its Tencent holding and the successful listing of Prosus today has certainly gone some way to achieving that target,” said Neil Campling, an analyst at Mirabaud Securities. “Prosus is not only the Tencent holding though.”(Updates with CFO comment in sixth paragraph.)\--With assistance from Swetha Gopinath, Anna Edwards, Matthew Miller and Kit Rees.To contact the reporters on this story: Loni Prinsloo in Johannesburg at email@example.com;John Bowker in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Thomas Pfeiffer at email@example.com, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.A Spanish startup best known for delivering takeaways is betting on building a network of convenience stores to expand its business -- just as the food delivery sector eyes a wave of consolidation.Glovo, a Barcelona-based web platform used mainly for ordering food from restaurants, is rolling-out so-called dark-supermarkets -- delivery-only convenience stores -- from Tbilisi to Lisbon in an attempt to tap into growing web-based demand for groceries.The company is also focusing on delivering groceries for existing supermarket chains. In May it announced a deal with Carrefour SA to handle their deliveries in under 30 minutes in four countries, and it has similar partnerships in different countries with Walmart Inc., Auchan Holding Sadir and Kaufland Stiftung & Co KG, among others.Glovo drew preliminary interest from Uber Technologies Inc. and Deliveroo, Bloomberg reported in August. The startup is in 180 cities spread across 24 countries, according to its website.But the company is increasingly marketing itself as an "app for anything" that allows users to request a rider -- as the delivery staff, who mainly ride bicycles, are known -- to buy any product. With this function, a user can send a rider to any store to pick up a product and the price is charged directly to the user’s credit card, together with a fixed service fee.Competitors are increasingly moving into delivering groceries alongside restaurant-delivery. Uber Eats has piloted delivery goods from Nestle and Unilever, and said in July that it’s in discussions with European supermarkets to roll out a grocery delivery service. Amazon.com Inc. is growing its grocery store delivery operations in several countries including Spain, one of its first markets.Germany’s Delivery Hero SE is already offering transport of consumer items such as groceries and toiletries in 12 markets and plans to raise that number in the coming months, Chief Executive Officer Niklas Oestberg said last month.Demand for online groceries in Europe’s largest economies set to grow by about 60% between 2018 and 2023, to more than $45.1 billion, according to estimates compiled by Delta Partners, a consultancy.Unlike online grocery shoppers such as U.K.’s Ocado Group Plc, which delivers weekly purchases the following day, Glovo is targeting small baskets at speed. Such deliveries are simply the latest twist in the “anything" strategy, according to co-founder and Chief Executive Officer Oscar Pierre, a wiry 26-year-old aeronautical engineer who started the company in 2015, shortly after a short stint working for airplane manufacturer Airbus SE.“The app aims to allow users to buy whatever they need from their phone", says Pierre.Glovo’s main food-delivery competitor in Latin America, Rappi, recently received an $800 million investment from two SoftBank units, the Vision Fund and the smaller, Latin America-focused Innovation Fund. Glovo is also in talks to receive an investment from SoftBank’s Vision Fund, after raising 150 million euros in a round earlier this year.To contact the reporter on this story: Rodrigo Orihuela in Madrid at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Stefan NicolaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Bolt, the ride-hailing service formerly known as Taxify, said it has begun operating a food-delivery business in its native Estonia, and will launch in other European and African countries next year.Bolt Food will deliver meals from about 80 restaurants in the country’s capital of Tallinn, using the company’s existing network of thousands of drivers, the company said in a statement Wednesday. Bloomberg reported in March that Chief Executive Officer Markus Villig would consider bringing a food-delivery service “anywhere we have a market-leading position.”The Estonian company’s expansion follows significant consolidation of the food-delivery market in Western Europe. In August, Takeaway.com NV and Britain’s Just Eat Plc agreed on terms to combine their two businesses. Takeaway also agreed to acquire the German business of Delivery Hero SE for approximately 930 million euros ($1 billion) in December.Bolt has 25 million registered users across the 30 countries where it’s active, and hundreds of thousands of drivers working for its ride-hailing service, according to a spokesman. Villig said in March he’s confident the market will support his ambition to compete in the food-delivery space.The company raised $175 million in May last year at a $1 billion valuation, in a deal led by Daimler AG.To contact the reporter on this story: Nate Lanxon in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Stefan NicolaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On-demand food delivery startup Deliveroo has announced that it is leaving the German market, citing difficulties in maintaining the level of customer service that it offers across several other markets that it operates in. "At Deliveroo we're on a mission to create the very best food delivery service in the world, and at the heart of this is offering a service that works brilliantly for our customers, riders and restaurants," it said in an email sent out to its users. Deliveroo had struggled to grow its market capitalization in Germany, against severe competition within the food delivery space.
(Bloomberg) -- Amazon.com Inc.-backed food-delivery service Deliveroo announced an abrupt retreat from Germany after more than four years, a casualty of increasingly cut-throat competition tearing through the industry.The service will cease operations in Europe’s largest economy on Aug. 16, telling customers in an email Monday that it can no longer offer the desired “brilliant” service standard. Instead, Deliveroo will focus on “growing our operations in other markets around the world.”Deliveroo’s German business is the latest victim in the European food-delivery industry, which has long suffered from expensive competition that has forced established players to consolidate or close shop. Takeaway.com NV agreed to buy the German businesses of Delivery Hero SE last year to end an expensive rivalry in the country where both were competing for market share at the cost of profitability. Britain’s Just Eat Plc and Takeaway are now pursuing an all-share 5 billion-pound ($6 billion) combination.The firm employs riders that cycle restaurant meals to customers’ doors in boxy backpack containers emblazoned with Deliveroo’s logo. It’s a business model that’s logistically more challenging than simply offering a platform to connect restaurant and foodie. The service is available in cities including Berlin, Frankfurt and Cologne, though Deliveroo already began retreating from some German cities last year, including Leipzig or Stuttgart.It’s especially tough to make money in Germany, where consumers don’t order as often as their counterparts in the U.K. or the Middle East, and where riders can go on strike and form unions. Takeaway already buried the Deliveroo clone Foodora, which operated alongside Deliveroo in Berlin, and Uber Eats never started in the country.Deliveroo hasn’t ruled out returning to the German market in the future, according to a person familiar with the matter. It will refocus its resources first to grow its business in other parts of Europe and the Asia-Pacific region. Job losses for employees, riders and restaurants will be compensated, the person said.In May, Deliveroo said it had secured $575 million in funding from Amazon.com Inc. and other investors. The company at the time said it would continue to expand in markets including the U.K., France, Italy, Spain and Dubai.\--With assistance from Sarah Syed.To contact the reporters on this story: Stefan Nicola in Berlin at firstname.lastname@example.org;Nate Lanxon in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Electric scooter startups have been grappling with an unexpected problem that’s laying waste to the two-wheeled vehicles: Europe’s cobbled streets.Scooter companies have rapidly expanded across the continent, targeting tourist spots such as Paris and Lisbon, raising hundreds of millions of dollars of venture capital funding in the process. But while the first scooter startups began in California, where sidewalks are predominantly flat, Europe is full of cobbled streets built hundreds of years ago. Users got uncomfortable rides at best, or scooter-crippling breakages at worse.“Lisbon is pretty tough for that in particular,” said Wind Mobility Chief Executive Officer Eric Wang. “You only have the promenade that’s flat and smooth, but away from that it becomes quite hilly and cobbled.”Joe Kraus, president of Lime, said he’d seen riders adopting standing techniques to deal with cobblestones specifically. “The simplest one is they actually stand on their toes,” he said. “It’s amazing but you can’t feel the stones as much.”Many of the continent’s oldest capital cities also feature very narrow streets -- useful for taking a shortcut on a scooter, and near-impossible to navigation for a scooter company’s collection truck.“If a vehicle is detected somewhere as needing refurbishment or repair, you’ve got to get a technician to that point,” said Carlos Bhola, co-founder of Circ, the company he created with Delivery Hero SE co-founder Lukasz Gadowski. “Sometimes we have to use the subway to get to the vehicles and pick it up.”In popular areas, a single scooter can be used for about 10 journeys per day. The inevitable deterioration of wheels or steering columns can render them useless, and dumped on sidewalks or in rivers and canals.To solve these problems, scooter companies have been building their own proprietary models. Lime’s latest iterations have bigger wheels and robust suspension, modifications that are also favored by its competitors. Vehicles from companies like Bird Rides Inc. are now almost too heavy to lift by hand, making them harder to steal. Some use heavy-duty bicycle brakes. Tier Mobility, one of the largest European scooter companies, has added two wheel-mounted brake pads on its latest model, in addition to electric brakes.Newer designs use as few components as possible to further increase a scooter’s lifespan and reduce the need to store stocks of spare parts in maintenance centers. These new models can cost about the same as the latest off-the-shelf models -- in the ballpark of $500 in some cases -- but because they are expected to last longer, the unit economics are more promising.“Our tests show that our new models will last one or two years,” said Patrick Studener, head of Bird’s European and Asian business. “It’s night and day compared to the first models.”A number of other companies, including Wind, aim to make their scooters last for two years. No executive who spoke to Bloomberg News for this story said that anything under a year’s lifespan was a reasonable target.Broken RidesThe approach to Europe is an insight into how mobility startups are thinking twice about their previous model of moving fast and breaking scooters. Now, startups are concluding that heavy-duty proprietary hardware and swappable batteries will help them make money, or at least curtail losses.Why E-Scooters Are on the Rise, Along With Injuries: QuickTakeIn July, the tech website the Information reported that Bird, one of the industry’s biggest players, posted a loss of nearly $100 million in the first quarter of 2019, with revenue shrinking to about $15 million in the period. No scooter company has yet to reveal that it’s profitable.Between 2017 and 2018, the startups spent the majority of their early cash buying scooters, with a basic unit costing upwards of $400. Today a scooter can cost about half as much, as demand over the past 18 months has helped push down manufacturing costs. But models with bigger batteries and larger, cobble-friendly wheels can still run $500 or more.“They were more like toys, and not really built for sharing,” said Fredrik Hjelm, co-founder and CEO of Sweden’s Voi Technology AB. “Those models were the best out there at that point, but we realized that we needed to fast-forward our own vehicle development.”Another problem is that scooters are easy to steal. One person said that in some instances, thieves would take dozens of units off the streets in Paris overnight using networks of vans. Thieves worked out how to break scooter locks and location trackers, and would then resell them. It wasn’t unusual to see about 20 vanishing a day in Paris, the person said.Building a Sturdier ScooterBesides their more resilient frames, some new models of scooters now also come with swappable batteries. Most existing units include large power packs fixed inside the vehicle that can’t be removed. As a result, the only way to charge them is to either collect them all each evening and recharge them overnight -- which Tier does, in addition to maintenance -- or have some of them juiced up by gig economy workers who want to earn a few extra bucks -- a system adopted in some cities by Bird.“Swappable batteries reduce charging costs and should reduce asset depreciation,” said Paul Murphy, a partner at VC firm Northzone, which invested in Tier. “Consumers will benefit from more fully-charged vehicles, and operators will benefit from better unit economics.”Murphy said he believes hardware will continue to quickly evolve, and will be like “a Moore’s law for mobility,” referring to the observation by Intel Corp. co-founder Gordon Moore predicting exponential growth in computing power.The ability to swap out empty batteries in the street and have the scooter back in service right away will be “a game-changer” for the industry, said Lawrence Leuschner, CEO and co-founder of Tier. “The operating costs will be a lot less when you can swap on-site.”But even as hardware developments show promise, other hurdles remain. In the U.K., where ride-hailing, the gig economy and electric bicycle sharing schemes are a mainstay of city life, scooters remain illegal on public roads. The government said in March it was opening “the biggest regulatory review in a generation” of current mobility laws, some of which date back to 1835, but the death of a YouTube star on an electric scooter in July renewed safety concerns.“People who use e-scooters need to be aware it is currently illegal to ride them on the road and the pavement,” a spokeswoman for the U.K.’s Department for Transport said in a statement. “Safety is at the heart of our roads laws.”To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Spanish food delivery startup Glovo has drawn preliminary interest from Uber Technologies Inc. and Deliveroo in recent months as the industry undergoes a wave of consolidation, people familiar with the matter said.Talks between the Barcelona-based company and potential partners have been on and off and may not lead to a transaction, the people said, asking not to be identified because the deliberations are private. While suitors have shown preliminary interest, Glovo isn’t actively looking for a buyer, the people said.Glovo is continuing to raise fresh funding and has also held early-stage talks with SoftBank Group Corp. about a potential investment, two of the people said. Glovo, which has markets in Europe, Latin America and Africa, may prefer to explore partnerships or deals on a region-by-region basis rather than a full sale, one of the people said.Representatives for Glovo, Uber, Deliveroo and SoftBank declined to comment.Delivery platforms have become prime takeover targets as startups battle for survival against more established incumbents and companies branch out into new services. On Monday, Just Eat Plc and Takeaway.com NV agreed to a 5 billion-pound ($6.1 billion) combination, less than six months after Takeaway.com spent about $1 billion on rival Delivery Hero SE’s German operations. Last month, Glovo struck a deal with French grocer Carrefour SA to make deliveries in France, Spain, Italy and Argentina.Square Inc. is selling its Caviar food-delivery app to DoorDash Inc. for $410 million, while Amazon.com Inc. has agreed to invest in Deliveroo.Click here to read more about the surge in delivery deals.Glovo, which markets itself as an app for anything and lets users request a range of products, was valued at about 850 million euros ($950 million) in its last fundraising round, one of the people said. The company is considering an initial public offering as soon as 2020, people familiar with the plans said in April. Investors in the firm include restaurant-owner AmRest Holdings SE, venture capital firms Lakestar and Seaya Ventures and Delivery Hero.Uber Eats, targeting an expansion into grocery delivery, has held talks with the U.K.’s second-biggest grocer, J Sainsbury Plc, people familiar with the matter said last month. The supermarket operator this month announced it was partnering with Deliveroo to bring hot pizza to homes in four British cities.To contact the reporters on this story: Giles Turner in London at email@example.com;Rodrigo Orihuela in Madrid at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Amy Thomson, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The boards of Just Eat Plc and Takeaway.com NV agreed on terms of an all-share 5 billion-pound ($6 billion) combination that pits two food-delivery incumbents against a clutch of well-backed startups.The new company, Just Eat Takeaway.com NV, is betting that its combined experience in turning a profit will help convince shareholders that it can fight off sizable rival startups that may also join forces."There is only a limited number of listed companies and ample funding for private companies," said Takeaway.com Chief Executive Officer Jitse Groen in a call with reporters. "However, it is a logical way forward that the companies that are going to be the biggest will acquire further businesses."The food-delivery industry in Europe has become a battleground, with rivals competing on price and copying one another’s business models. Joining forces with Takeaway.com will mark something of an escape for Just Eat, which has stuttered in the face of pressure from rivals and an activist shareholder. Once the dominant player in the food-delivery market in the U.K., its shares have fallen amid growing competition from Uber Eats and Deliveroo, and the company is without a permanent CEO after the departure of Peter Plumb in January.The two boards have agreed on the deal, first revealed in late July, according to a statement Monday. Just Eat Shareholders will own 52.15% of the combined entity, and Takeaway.com holders will have 47.85%.Groen and EvansGroen, who has a fortune of about $1.4 billion, according to the Bloomberg Billionaires Index, will be the CEO of the combined company. Mike Evans, currently the chairman of Just Eat, will assume the same role for the combined group, according to the statement.The new company will remain headquartered in Amsterdam, but with a premium listing on the London Stock Exchange, and will expect to de-list from the Netherlands. There are no specific plans to shift or reduce the workforce in Just Eat’s main U.K. offices, the statement added.Just Eat Takeaway has no plans to divest businesses following the merger, Evans said on the call, adding that the deal is the "beginning of long-term consolidation in our sector."The food-delivery market in Europe has been marked by rival business models and aggressive entrants. Just Eat was founded in 2001 in Denmark before moving to the U.K., while Takeaway.com was founded in 1999. In comparison, Deliveroo and Uber Eats -- the two main rivals in Europe, which have received millions in funding -- were founded in 2013 and 2014 respectively. Other rivals such as Glovo and Delivery Hero SE also compete in different regions.Diverging FortunesWhile Just Eat has been stagnating, Takeaway.com has expanded following a surging share price. In December it agreed to buy Delivery Hero’s German operations for about $1 billion, ending an expensive rivalry in a country where both were competing for market share at the cost of profitability.The U.K. will be a major market for Just Eat Takeaway.com, and is also one of most competitive. Uber Eats and Deliveroo have invested heavily in the country, and have expanded from the logistics of delivery -- getting the food from the restaurant to your door -- to launching rival marketplace platforms that concentrate on aggregating available eateries for users.Expectations of a counterbid to Takeaway.com have waned, leaving rival bids to likely come between existing rivals. Delivery Hero CEO Niklas Oestberg last week poured cold water on speculation his company may approach Just Eat, saying it has plenty of growth potential through expanding its offering to challenge Amazon.com Inc. in local shipments.Amazon also has a stake in Deliveroo, a deal that is under review by U.K. regulators, and one that is widely seen as a move by the U.S. tech giant to better understand the food delivery market after it shut down its own food-delivery business in the U.K. in late 2018.Just Eat Takeaway.com expects to create recurring annual pretax cost benefits of approximately 20 million euros by the fourth anniversary of the completion of the deal, with around 10 million euros expected a year after the deal closes, the statement said.(Adds context throughout.)To contact the reporter on this story: Giles Turner in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Paul SillitoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Food delivery companies Takeaway.com and Just Eat reported strong order growth for the first half of 2019 on Wednesday, as they gear up for their planned $10 billion merger announced earlier this week. The Dutch and British companies on Monday said they had agreed in principle to an all-share merger to create a company that would rival Uber Eats as the world's largest food delivery company outside China. This deal comes only months after Takeaway's 930 million- euro ($1 billion) acquisition of the German business of rival Delivery Hero, which settled a costly battle for market domination in Germany.
(Bloomberg) -- Just Eat Plc posted an improvement in order growth over the first half of the year, but avoided mentioning its ongoing talks with rival Takeaway.com NV.The U.K. food delivery company reported adjusted earnings before taxes, interest, depreciation and amortization for the first half of 2019 of 72.4 million pounds ($88 million), with orders up 21% year-on-year to 123.8 million. Just Eat reconfirmed full year revenue is expected to come in between 1 billion pounds and 1.1 billion pounds, against analyst estimates of 1.04 billion pounds.Dutch rival Takeaway revealed on Saturday that it’s made a 5 billion-pound all share bid for Just Eat. The Amsterdam-based company also reported earnings Wednesday, posting a 70% jump in orders over the first six months of the year, driven by its $1 billion acquisition of Delivery Hero’s German business. On an earnings call, Chief Executive Officer Jitse Groen also chose to sidestep any question related to a possible deal for Just Eat, keeping the focus on his own company’s performance.Just Eat’s shares rose 2.7% in early trading in London, while Takeaway rose 2.8% in Amsterdam.Growth is a vital metric for both companies, who were both seen as secure incumbents before the arrival of a clutch of well-backed startups. Food delivery has since become one of the fastest growing industries in the tech sector, with rivals sinking millions of dollars to compete on prices and the mechanics behind the ordering and delivery of takeouts. The U.K. is also one of most competitive markets, where Just Eat is battling against a growing Uber Eats, which is launching a rival marketplace platform across Europe following the entry of Amazon-backed Deliveroo into the segment in mid-2018.Just Eat has also been grappling with a soft U.K. market, balanced by growth in Canada, Italy, Switzerland and Ireland. Shares of Just Eat fell about 25% over the past six months, prior to Takeaway.com’s bid.To counter slowing growth, Just Eat has been boosting its advertising spend. Group marketing spend over the first half was 83.8 million pounds, up 21% year on year.Expectations of a counterbid to Takeaway have also waned. Delivery Hero SE CEO Niklas Oestberg on Tuesday poured cold water on speculation it may approach Just Eat, saying the company has plenty of growth potential as it expands its offering to challenge Amazon.com Inc. in local shipments.(Adding shares, context on Takeaway results.)To contact the reporters on this story: Giles Turner in London at firstname.lastname@example.org;Wout Vergauwen in Amsterdam at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Delivery Hero SE Chief Executive Officer Niklas Oestberg poured cold water on speculation it may make a counter-bid for a U.K. food-delivery rival, saying the company has plenty of growth potential as it expands its offering to challenge Amazon.com Inc. in local shipments.Interest in Oestberg’s acquisition strategy has risen since Peel Hunt analysts named the Berlin-based food delivery company as a possible counter-bidder for Just Eat Plc, which is in talks to be sold to Dutch delivery firm Takeaway.com NV for about $6.2 billion. Delivery Hero could benefit from the deal indirectly via its 15% stake in Takeaway.“We do not need M&A and consolidation to be successful,” Oestberg said Tuesday in a phone interview with Bloomberg. A tie-up of Takeaway and Just Eat would have “very minimal impact” on Delivery Hero as the geographic overlap with them is small.The stock rose as much as 2.5% and was up 1.5% at 2:10 p.m. in Frankfurt trading, increasing its gain for the year to 34%. Delivery Hero is Europe’s most valuable company in the burgeoning food-delivery sector, worth 8.2 billion euros ($9.2 billion).“Takeaway is opportunistically buying scale for a cheap price,” said Giles Thorne, an analyst at Jefferies in London. “Delivery Hero has enough going on elsewhere with its investment plans.’’Challenging AmazonRather than just focusing on restaurant meals, Delivery Hero is looking to challenge Amazon with fast transport of consumer items such as groceries and toiletries. The company offers broader delivery service in 12 markets and plans to raise that number in the coming months, Oestberg said.In Istanbul, where Amazon has struggled to gain traction, Delivery Hero can reach customers in under 15 minutes on average and expects to reach a majority of the Turkish population by year-end, the CEO said. It’s also implementing membership programs in some of its markets to boost loyalty.Delivery Hero exited the U.K. in 2016 after selling its operations there to Just Eat. It has since focused on expanding in fast-growing markets in the Middle East and Asia where it’s the leading provider. The company raised the number of active restaurants by 70% to 310,000 in 4,000 cities on growth in Asia and the Americas.The strategy looks to be gaining traction. Delivery Hero doubled revenue in the second quarter to 315 million euros. The company also reaffirmed its financial guidance, which was raised in June.Elusive ProfitsDespite the potential merger of two competitors, “the likelihood for further cross-border M&A is low,” said Thorne. The more likely consolidation path in the sector lies in combining local operations in places like the U.S., Brazil and India, he said.Even with the growth surge, profitability remains elusive as Delivery Hero spends on expansion. The company expects a full-year adjusted loss before interest, taxes, depreciation and amortization of between 370 million euros and 420 million euros. While logistics margins are tough, “we’re not scared of that,” Oestberg said. “We want to become more of a ‘delivery everything’ business.”(Updates with analyst comments beginning in fifth paragraph.)To contact the reporter on this story: Stefan Nicola in Berlin at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Just Eat, the U.K.-based food delivery company, announced that it is merging with Dutch food delivery major Takeaway.com in a £9 billion deal ($11,046,960), making it one of the largest companies in the food delivery space across the world.
(Bloomberg) -- Takeaway.com NV made a 5 billion pound ($6.2 billion) bid for rival Just Eat Plc, continuing its consolidation push with a deal that would intensify competition with the likes of Uber Technologies Inc. in the food-delivery space.The Dutch company is offering an implied value of 731 pence for each Just Eat share, 15% more than the target company’s stock price on July 26, the day before talks first became public. The new company intends to remain based in Amsterdam, with a premium listing on the London Stock Exchange. Just Eat shares rose as much as 26% to 799.4 pence in London, suggesting investors are betting that possible rival suitors might drive up the price of the asset. The food delivery industry in Europe has become a battleground, with rivals competing on prices and copying each other’s business models. A deal would mark the second time Takeaway.com has entered the U.K. The company first launched in the country in 2012, but sold the business four years later to Just Eat, after struggling with growth."A combined entity can achieve over 10 billion pound market cap short term," said Marcus Diebel, analyst at JP Morgan in a research note. "A new leadership will bring what Just Eat lacks, execution on tech and an acceleration in disposals.Takeaway.com has been rapidly expanding following a surging share price. In December it agreed to buy rival Delivery Hero SE’s German operations for about $1 billion, ending an expensive rivalry in a country where both were competing for market share at the cost of profitability.Joining forces with Takeaway.com would mark something of a bailout for Just Eat, which has stuttered in the face of pressure from rivals and an activist shareholder. Once the dominant player in the food delivery market in the U.K., its shares have fallen amid growing competition from Uber Eats and Deliveroo, and the company is without permanent CEO after the departure of Peter Plumb in January.What Bloomberg Intelligence SaysTakeaway.com’s implied 15% premium all-stock bid for U.K. food-delivery leader Just Eat is fair -- but may be raised, in our view -- and the lack of country overlap, bar Switzerland, limits regulator risk. The combined entity would dominate in Europe vs. Uber Eats and Deliveroo.Diana Gomes, consumer goods analystThe combined company would be one of the biggest in the sector. Their combined market value was about $11 billion before news of the talks broke on July 27. While both have a similar valuation, Just Eat shares had fallen 25% over the past 12 months while Takeaway.com’s shares had risen 46%.Rather than sparking a bidding war, Takeaway.com might decide to sell on parts of the assets, Barclays analyst Andrew Ross said in a note to investors.“It is perfectly possible that Uber gets involved down the line - it is possible that Takeaway.com could decide that markets like Australia and Canada are non-core within Just Eat and looks to sell those down the road,” Ross said in the note. Just Eat shareholders would own approximately 52.2%. in the new combined company, while Takeaway.com shareholders would own approximately 47.8%.Takeaway’s chief executive Jitse Groen -- who has about a $1.4 billion fortune, according to the Bloomberg Billionaires Index -- has been penciled in as the CEO of the combined company, while Mike Evans, currently the chairman of Just Eat, will assume the same role for the combined group, according to the statement.Investor Cat Rock Capital Management LP has been lobbying for Just Eat to merge with a rival, arguing that consolidation would be the only way to deliver “real value.” Cat Rock holds a 4.9% stake in Takeaway, according to a filing with Dutch market regulator AFM. It’s stake in Just Eat stands at 2.6%, according to Bloomberg Data.Goldman Sachs, Oakley Advisory and UBS advised Just Eat, while Bank of America Merrill Lynch and Lazard advised Takeaway.com.(Updates with analyst comment.)\--With assistance from Wout Vergauwen.To contact the reporters on this story: Giles Turner in London at email@example.com;Tom Metcalf in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European online food delivery firm Takeaway.com NV said it was in talks about an all-share offer for Britain's Just Eat, announcing the possible bid after a media report about a 9 billion pound ($11 billion) merger plan. The British firm confirmed it was in talks about an offer by Takeaway.com, after Sky News reported the possible deal earlier on Saturday. Takeaway.com this year completed a 930 million euro ($1.03 billion) acquisition of the German activities of Delivery Hero, settling the costly battle for supremacy in the German food delivery market.
Chef Youm Jung-phil plans to close his restaurant in Seoul's affluent Gangnam district this month, worn down by the rising cost of labour and rent as well as declines in the number of customers eating in. Instead Youm, who has nearly 20 years of experience in the industry, has opted to sell his avocado burgers and bagels by delivery only, renting a 16.5 square metre kitchen space from Uber co-founder Travis Kalanick's CloudKitchens.
(Bloomberg Opinion) -- Investors in Softbank Group Corp. and Naspers Ltd. should see Rocket Internet SE as a cautionary tale.Chief Executive Officer Oliver Samwer is evaluating a plan to take the Berlin-based startup incubator and venture capital firm private, according to a report in Germany’s Manager Magazin. For Samwer and his brothers, who are the biggest shareholders, the move is a no-brainer. For investors, it’s a missed opportunity.The Samwers own about 43% of Rocket, which had a market capitalization of 3.7 billion euros ($4.2 billion) before the Manager Magazin report. But combining the book value of the 200 or so startups in which it has invested, its three publicly traded investments and its net cash, gives it a valuation closer to 4.7 billion euros. On that basis, it’s trading at a 21% discount.Rocket’s hefty pile of money would make a take private deal pretty straightforward: it was sitting on net cash of 3.1 billion euros in mid-May, according to a company presentation. Raising debt to fund a buyout should be straightforward.The missed opportunity for investors lies in the deployment of that capital, or rather, the failure to do so. Rocket has sold down its stakes in Delivery Hero SE, Jumia Technologies AG and HelloFresh SE in the past year. That generated significant returns, but not much else. Some of those proceeds funded a buyback program, but far more is sitting unused on the balance sheet. Samwer told shareholders earlier this month that Rocket has “more capital than ideas,” and investors are the poorer for it.If he’s right, then a management buyout makes some sense, since it would leave the private firm with a more manageable pile of cash to invest, and ease capital market scrutiny. But investors have every right to feel let down.The question is what offer they should be willing to accept. Were the brothers to pony up 30 euros a share, as Berenberg Bank analyst Sarah Simon proposed last month, that would be pretty much in line with a 4.7 billion-euro book value, and also represent a 21% premium to the average share price of the past 200 days. Yet it would still leave Rocket with net cash of more than 500 million euros to invest in future prospects. Shareholders should be loath to agree to any lower bid.If an offer materializes below that level, they should demand that the supervisory board return cash by other means. Normally they’d be clamoring for a new CEO, but the company’s ownership structure makes that difficult. Rocket’s situation shows how hard it can be to demonstrate the underlying value of loss-making but fast-growing startups to public investors. Naspers and Softbank are both evolving into publicly traded venture capital firms, and all three trade at a discount to the book value of their investments. The model still needs to be proven.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Oct.10 -- Niklas Oestberg, chief executive officer at Delivery Hero, discusses the consolidation taking place in the food delivery sector, his company’s growth plans, expanding beyond food and the criteria for a successful market. He speaks exclusively on “Bloomberg Markets: European Open.”