Just Eat Targets Bigger Slice Of Global Fast Food Trade
Published on May 23 2014 1:50 PM in Food
Just Eat is accelerating efforts to increase its share of the international fast food market. Last month the firm made its £1.5 billion (€1.8 billion) début on the London Stock Exchange, in what was the biggest technology float on the market for eight years. After raising £360 million (€441 million) from its initial public offering (IPO) — £260 million of which went to existing investors including SM Trust, Index Ventures, Vitruvian Partners, Redpoint Ventures, Greylock Partners, executives and staff, former employees and early-stage investors — the company now has its mind set on expansion as it seeks to enlarge its market share globally. It has been upgraded to a premium listing following a high demand for its shares. Ireland is the third largest market for the company in terms of number of orders per head of capita, and it is growing quickly. Just Eat began in Denmark in 2001, but relocated to London five years later. More than 36,000 restaurants have signed up to use its service. At present it operates in 13 countries — Belgium, Brazil, Canada, Denmark, France, India, Ireland, the Netherlands, Norway, Spain, Sweden, Switzerland and Britain. In 2013, the group processed over 40 million orders, generating nearly £700 million in total transaction value for the restaurant industry. Despite widespread fears of a new tech bubble, David Buttress, its head, doesn’t think that the company is overvalued. He’s determined that investors are correct in investing in the company: "I think the valuation is based on a number of factors. One of these is that Just Eat is a hugely successful European technology business that is now 13 years old and has a proven track record. This is a high-growth internet company that is growing in double digits year-on-year and is ahead of expectations, as our latest interim statement for Q1 shows. People can see that, in the future, this company will be a fantastic asset and, in the end, that is what is exciting investors."