📈 Rising Against Odds
Despite rising interest rates affecting most sectors, European food delivery companies like Deliveroo, Just Eat, and Delivery Hero have shown resilience and profitability in 2023. They have managed to pivot from aggressive expansion to sustainable growth.
💰 Financial Milestones
All three companies are expected to report positive adjusted EBITDA for the first time. Deliveroo's gross transaction value rose 3% to €8.17B. Just Eat's adjusted EBITDA reached about €320M, and Delivery Hero's adjusted EBITDA margins surpassed 0.5%.
🌍 Market Dynamics
The success of these companies in 2023 proves the viability of their business model. They've efficiently extracted more value from customers even amidst the cost of living squeeze, indicating a robust market demand.
🔍 Future Prospects
Analysts like Giles Thorne from Jefferies predict a reasonable mid- to long-term gross transaction volume growth in the high single digits. The demographic shift towards delivery-prone youngsters likely to spend more as their disposable income increases also bodes well for the sector.
🚀 Operational Efficiency
Increased market penetration is expected to boost margins. With more restaurants and diners in hyperlocal areas, delivery trips become shorter, and central overheads remain largely fixed. This operational efficiency suggests a positive trend in operating margins.
What are your thoughts on the future of food delivery apps in Europe?
