Develop On-Demand Food Delivery app: Lessons to learn from Just Eat & Takeaway Merge to be a market leader
The food delivery conflicts in the European continent remain more excited than ever. These conflicts are leading to some major stabilization in the industry. Just Eat and Takeaway.com the two bigger take-out and delivery businesses in the region have declared that they are in the “advanced stages” of an alliance. This deal is expected to help them in combining forces and take on more scale to compete better with giants like Uber Eats and Amazon-backed Deliveroo. Both the companies – Just Eat and Takeaway.com are currently publicly listed. Just Eat in London and Takeaway.com in Amsterdam. Both companies have a market cap of around $5 billion. The combined entity is expected to have an estimated market value of more than €10 billion, or $10 billion.
The shared prices are moving very fast right now and the companies are on the verge of making the world’s largest online food delivery platform. This platform will be able to process 360 million orders worth €7.3 billion ($8 billion) in the year 2018.
The UK has some merger rules which have a limit on how long the two companies can have this deal. The final approval is expected to be taken until August 24 from investors to get the deal squared away.
Just Eat and Takeaway.com say that the two boards have already agreed on the explicit terms, which are as follows:
The current CEO of Takeaway.com, Jitse Groen, would become CEO of the merged company. The current CFO of Just Eat, Paul Harrison, would become the CFO. Brent Wissink, currently CFO of Takeaway.com, and Jörg Gerbig, currently COO of Takeaway.com, will be taking the position of co-COOs of the Combined Group.
The headquarters of the combined company would be in Amsterdam but “with a bounty listing on the London Stock Exchange” and a “vital part” of its operations in the United Kingdom, as it is Just Eat’s home market.
Just Eat shareholders will be getting 0.09744 Takeaway.com shares in the trade of Just Eat share.
Just Eat shareholders will be owning around 52.2% of the business; Takeaway.com shareholders will be owning around 47.8 %. The percentage is based on the fully reduced ordinary allotted share capital of Takeaway.com. At the same time the dilution from any conversion of Takeaway.com’s convertible bonds, and the fully diluted share capital of Just Eat is excluded in each case. This is the scenario of the current date of the announcement.
There is an implication value for Just Eat of 731 pence per share based on Takeaway.com’s closing share price on 26 July 2019 of €83.55. This means a premium of 15% to Just Eat’s closing share price.
Mike Evans, the current Chairman of Just Eat, is expected to become the Chairman of the Supervisory Board of the Combined Group. Adriaan Nühn, who is the current Chairman of the Takeaway.com Supervisory Board, is expected to take up the position and role of Vice-Chairman of the Supervisory Board of the Combined Group.
Takeaway.com became an IPO and went in public in the year 2016. It is not a newbie and knows how to tackle the rivals by bidding to expand its business against increasing competition from Uber Eats and Deliveroo.They paid $1.1 billion in the year 2018 to buy Delivery Hero’s German operations. Whereas the company based in Berlin was seen continuing to turn its thought to operations in developing markets.
Economies of scale are a crucial part of making the financials of delivery and other transit. E-Commerce services are found to be working better. More efficient routes could be developed and the drivers can be plotted more closely for the pick-ups and the drop-offs. This becomes very necessary when you consider the freshness of the passenger in case of food services.
It also makes some more sense in some other areas such as in terms of the investments that a delivery company will make in building better back-end systems to operate the services. You can get the payoff faster if you have a wider network of restaurants and drivers tapping into those investments.
Indeed, it is a fact showing that the CEO of Just Eat would become the CFO which emphasizes some clear financial reasons for the deal.
Top Features to get for your Takeaway & Just eat clone food delivery app : Easy And Intuitive User Interface
A clean and intuitive user interface is a must for the app. The users interact with the app and request services through its user interface. It is a study that shows more than 50% of users won’t open the app the second time if their first-time experience is not good. Another study shows that 80% users won’t give an app the third chance if they don’t find what they want in two attempts. So, your On Demand Food Delivery App must have a properly designed user interface. The elements must load quickly and the user should be able to navigate easily.
» Curated Deals And Promotions
Everyone these days wants to save time and money. On-Demand Food Delivery App must present all the relevant items to users as soon as they open the app. The On-Demand Food Delivery App has to be intelligent enough to curate an exceptional list of products based on user’s age, gender, location, time of the day and order history.
Social media login and profile creation will help to obtain access to the user’s age and gender. GPS functionality can get the location data of the user. So, these two features should be incorporated in your Food Delivery App to make your app stand out in the competition. With integrated artificial intelligence (AI) the app can be more reliable at predicting these things. You can use these to have your users attracted with great deals and promotions.
Adding these smart features to your on-demand food delivery app can help you in getting more customers and keeping them loyal. We are the experts in the field of developing on-demand apps with the latest technology and amazing user interface. To kick-start your food delivery business, connect with us for a free consultation.