DOCSLIB.ORG

Food Delivery Companies an Introduction

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Food Delivery Companies an Introduction Food Delivery Companies An Introduction For Qualified Investors only Introduction The Food Delivery industry is a highly competitive market that saw huge global growth in 2020 as the trend of eating at home was massively accelerated by stay-at-home orders during the Covid-19 pandemic. These transitions in consumer behaviour are likely to be a permanent change as people will continue to value convenience and selection. The industry is hot with merger and acquisition activity, with 3 major deals being secured in 2020 alone. We expect competition to continue in the coming years, especially as companies expand into the emerging delivery markets for other industries, including pharmaceuticals, groceries, and other last-mile delivery services. What is their Business Model ? It is important to know that the product of these companies is not actually the delivery itself. Rather, they develop software for a food delivery marketplace and logistics platform. They do not actually employ their own drivers, but pay them as independent contractors. This allows them to avoid higher costs for wages and employer liabilities, freeing up more cash for crucial investments in marketing and advertising. However, this can change if local governments decide that delivery companies should reclassify their drivers as employees of the firm (like what happened with Uber and Lyft). Why are they Losing Money? Since the industry is highly competitive, all delivery companies are currently sacrificing profits in order to secure market share. The companies reduce their prices to attract more customers, and in some cases they also need to reduce their margins to attract more drivers in order to continuously grow volume. This content is for informational purposes only and does not constitute a solicitation, recommendation or endorsement to buy or sell any securities. For Qualified Investors only US Market DoorDash is the dominant force in the highly competitive US market. In 2020, the company along with its Caviar subsidiary (acquired from Square in 2019) had control over roughly 50% of the US overall, and performed even better in the suburbs with a 58% stake. DoorDash has roughly 18 million users, along with 5 million subscribers for the premium DashPass service. The company generated $2.88bn revenue in 2020, of which 100% came from US operations. Uber is the next biggest contender in America. The technology company’s UberEats service, along with its acquisition of Postmates, was able to secure roughly a 33% DoorDash is more than only food share of the US market in 2020. Postmates is considerably delivery. The company has recently more prominent in urban markets. Uber’s “delivery” expanded into other spheres by segment generated $3.9bn of revenue globally in 2020, of leveraging its logistics platform to provide which approximately $2.3bn came from the US. last mile delivery for companies looking to outsource. They have partnered with pharmacies like CVS and Walgreens to Grubhub is a pure play, and the third largest contender in deliver non-prescription essentials, and US food deliveries. It’s acquisition of Tapingo, a US college are also expanding into on-demand campus food ordering service allowed it to expand into the grocery delivery. DoorDash and its other student market. The company currently only possesses a industry competitors still have significant 16% overall stake in the US, but is clearly dominant in urban room for expansion into other delivery markets. The company generated $1.8bn revenue in 2020. A areas in the coming years. takeover of the company has been planned by JustEat- Takeaway for $7.3bn. The Other Guys Classical delivery services include pizza companies like Dominos & Papa John’s. These companies have been in the game for years, but are restricted to their own company in terms of delivery capabilities. For Qualified Investors only Chinese Market There are two main competitors in the Chinese market: Tencent backed Meituan and Alibaba’s Ele.me. These are the two largest delivery companies in the world. Meituan is a massive online shopping platform active in consumer products and various retail services industries. It’s delivery platform has over 290 million active monthly users, and 600 million registered users which place an average of 28 million orders daily. The company has around 42% of the Chinese market and generated roughly $10.2bn revenue in 2020, of which approximately 60% came from deliveries. Ele.me is currently a pure catering and food delivery platform that was acquired by Alibaba for $9.5bn. It has gained the majority of the market share in China with a 53% stake following the takeovers of rival delivery companies Baidu Weibei and Koubei, and now has over 200 million active monthly users. The company has recently seen interest from German supermarket chain ALDI and other foreign retailers to expand into grocery delivery. March 18, 2021 4 European Market Just Eat-Takeaway.com is by far the most dominant player in Europe, following the merger of the two biggest competitors. The merged company controls roughly 50% of the entire European food delivery industry, and also leads in the UK but by a smaller margin with only 37% of the market. The company is also scheduled to expand into the US with a $7.3bn deal acquiring Grubhub, which would make it the biggest delivery company outside China. Deliveroo is the next biggest player in Europe, with roughly a 21% slice in Europe overall, but has a significantly larger portion of the UK market with 33%. Deliveroo earned $5.7bn of total revenue in 2020. The company is set to IPO on the London Stock Exchange soon, and is expected to be valued at roughly $7bn. UberEats is the third biggest player and hot on the heels of Deliveroo, with an 18% stake in Europe and 24% in the UK. The tech company’s delivery service is the most international player in the industry globally, operating in hundreds of cities on 6 continents. Delivery Hero is the smallest player in Europe, with only a 6% entire market share. It operates in 40 different countries, across Europe, Asia, Africa, and the Americas. The company generated approximately $2.7bn in total revenue in 2020, about $270 million of which came from European operations. The company’s European market share has declined in recent years, but it remains a considerable contender. HelloFresh is a food delivery company with a slightly different business model. The company provides customers with pre-portioned ingredients and recipes on a weekly basis via subscriptions. The company had $4.5bn in global revenues in 2020, coming from operations in 14 countries. For Qualified Investors only CompSheet Mkt Cap Revenue Est. PE - 12M Est. Name Ticker Exc EV ($bn) Est. EV/Sales ($bn) ($bn) Fwd EV/EBITDA Meituan 3690 HK 252.57 14.1 246.2 194.0 139.6 8.6 Uber Technologies Inc UBER US 109.55 11.1 113.5 na -914.4 6.6 DoorDash Inc DASH US 46.60 2.9 42.4 na 249.9 10.9 Delivery Hero SE DHER GY 31.13 1.4 30.2 na -77.6 4.9 Just Eat Takeaway.com NV JET LN 15.16 2.3 15.2 na 108.3 3.2 Domino's Pizza Inc DPZ US 13.91 4.1 18.1 27.0 20.7 4.2 HelloFresh SE HFG GR 12.56 4.3 12.1 34.9 19.0 2.1 GrubHub GRUB US 6.39 1.8 6.6 106.1 28.9 2.9 Papa John's International Inc PZZA US 2.88 1.8 3.5 39.1 18.2 1.9 Marley Spoon AG MMM AU 0.50 0.3 0.5 na 83.1 1.2 Blue Apron Holdings Inc APRN US 0.14 0.5 0.1 na na 0.3 Roofoods Ltd 1022770D LN 0.00 1.5 na na na na Roofoods Ltd. is the holding company of Deliveroo and is in the process of being listed in the UK. Marley Spoon and Blue Apron are two smaller competitors of HelloFresh. This content is for informational purposes only and does not constitute a solicitation, recommendation or endorsement to buy or sell any securities. For Qualified Investors only Investment Solutions Phoenix Memory One Star on Meituan, DoorDash, Delivery Hero USD, 24 Months, One Star 120%, 16.0% p.a., Coupon with Memory, 50% European Barrier, 100% Autocall Barrier, Quarterly Redemption Market Anticipation Investment Rationale - The investor anticipates a bullish, stable or moderately - The investor is looking for an income and equity-linked product bearish market - The investor expects to receive a conditional positive return in bullish or stable markets - The investor believes the underlying's volatility will be - The investor may receive the capital by anticipation in case all the underlying are above a stable or decrease certain trigger level - The investor wants the capital to be protected in case of a moderately bearish scenario Product Description Product Information Coupon Payment Currency USD Autocall Trigger 100% Every quarter, Maturity 24 Months Frequency Quarterly - If all the Underlying are at or above their Coupon 16.0% p.a. Strike 100% respective Coupon Barrier, the investor receives the Coupon Frequency Quarterly Prot. Barrier 50% - Else, if at least one Underlying is below its Coupon Barrier 50% Prot. Type European Coupon Barrier, no Coupon is paid - If a Coupon is to be paid, the investor will Memory Effect Yes One Star 120% receive any potential previously missed Coupon(s) Underlying Information Name BBG Ticker Country Currency Early Redemption Meituan 3690 HK Hong Kong HKD Every quarter, - If all the Underlying are at or above their DoorDash DASH US United States USD respective Autocall Trigger, the product early Delivery Hero DHER GY Germany EUR redeems at 100% - Else, the product continues to the next observation date Advantages Considerations Final Redemption - Conditional Coupon : investors can receive - Capital is not protected: at maturity, the
Load more

Recommended publications
  • KMO170129 Delivery Whitepaper
    THE REVENUE ENGINE 5 Factors Fueling the Takeoff of Delivery & Takeout Fasten your menus! More and more restaurants are jumpstarting business with help from takeout and delivery services. From a trickle of dine-in foot traffic to the fast lane of to-go orders, sales are picking up speed thanks to this turbo-charged trend. 1. ACCELERATING DEMAND A decline in foot traffic for 6 quarters in a row has compelled Drawn to its easy accessibility and convenient meal solutions, restaurants to find a way to turn the corner on customer millennials in particular are driving the delivery and takeout acquisition and retention. Takeout and delivery have proven trend to new heights. On the mark for their on-the-go to be a reliable road to increased sales, exponentially lifestyles, delivery and takeout meet the millennial need for expanding the reach of restaurants and allowing them to speed, as technology streamlines the order and payment accommodate even more customers than their dining rooms process and removes the roadblock of human interaction. can accommodate. QUICK BITE: Chains like Papa John’s and Domino’s that excel at delivery are RUNNING pulling ahead in sales.1 THE NUMBERS average rate at which estimated value of $ 5X consumers surveyed 2016 global food 114 2 /mo. purchase takeout1 billion delivery market of consumers surveyed order more often % purchase takeout 10x % from fast casual 1 19 per month 49 restaurants1 order fast food of all restaurant visits % to-go more % consisted of to-go 79 often1 61 orders in 20163 DID YOU KNOW? Pizza Hut is grabbing a bigger slice of the delivery and takeout pie.
    [Show full text]
  • Response: Just Eat Takeaway.Com N. V
    NON- CONFIDENTIAL JUST EAT TAKEAWAY.COM Submission to the CMA in response to its request for views on its Provisional Findings in relation to the Amazon/Deliveroo merger inquiry 1 INTRODUCTION AND BACKGROUND 1. In line with the Notice of provisional findings made under Rule 11.3 of the Competition and Markets Authority ("CMA") Rules of Procedure published on the CMA website, Just Eat Takeaway.com N.V. ("JETA") submits its views on the provisional findings of the CMA dated 16 April 2020 (the "Provisional Findings") regarding the anticipated acquisition by Amazon.com BV Investment Holding LLC, a wholly-owned subsidiary of Amazon.com, Inc. ("Amazon") of certain rights and minority shareholding of Roofoods Ltd ("Deliveroo") (the "Transaction"). 2. In the Provisional Findings, the CMA has concluded that the Transaction would not be expected to result in a substantial lessening of competition ("SLC") in either the market for online restaurant platforms or the market for online convenience groceries ("OCG")1 on the basis that, as a result of the Coronavirus ("COVID-19") crisis, Deliveroo is likely to exit the market unless it receives the additional funding available through the Transaction. The CMA has also provisionally found that no less anti-competitive investors were available. 3. JETA considers that this is an unprecedented decision by the CMA and questions whether it is appropriate in the current market circumstances. In its Phase 1 Decision, dated 11 December 20192, the CMA found that the Transaction gives rise to a realistic prospect of an SLC as a result of horizontal effects in the supply of food platforms and OCG in the UK.
    [Show full text]
  • SLIM CHICKENS FALL 2021 on the COVER When Chicken Wings Are in Short Supply, FALL 2021 Boneless Alternatives Can Stand In
    MENU MUST-HAVES MONEY MOVES MEETING THE MOMENT FOOD FANATICS TAKE THAT Limited Time Only 2.O EARTH MATTERS Umami is the punch menus welcome, Make bank with smarter LTO, Restaurateurs on climate change, page 12 page 51 page 65 SLIM CHICKENS SLIM FALL 2021 FALL CHICKENS WING STAND-INS STEP UP ON THE COVER When chicken wings are in short supply, FALL 2021 boneless alternatives can stand in. Add some thrill Sharing the Love of Food—Inspiring Business Success See page 30. MENU MUST-HAVES MONEY MOVES to your bar & grill. PILE IT ON THE SMARTER WAY TO LTO From sports bars to chef-driven concepts, Make bank with aggressive limited- over-the-top dishes score. time- only options. 5 51 ™ ® SIDEWINDERS Fries Junior Cut Featuring Conquest Brand Batter TAKE THAT THE POWER OF TWO Umami is the punch that diners welcome. Get an edge by pairing up with a brand. 12 54 KNEAD-TO-KNOW PIZZA FLEX YOUR MENU MUSCLE Light clear coat batter Innovation in dough and toppings rise Strategic pricing can benefit the lets the potato flavor when there’s time on your hands. bottom line. shine through 22 58 CHANGE IT UP ON THE FLY 5 ways to step up your SEO. How boneless wings can take off when 61 Unique shape for wings are grounded. Instagram-worthy 30 presentations MEETING THE PLENTY TO BEER MOMENT Complex flavors demand suds that can stand up and complement. EARTH MATTERS 40 Restaurateurs respond to the menu’s role in climate change. TREND TRACKER 65 Thicker cut and clear Homing in on what’s coming and going.
    [Show full text]
  • Clickscapes Trends 2021 Weekly Variables
    ClickScapes Trends 2021 Weekly VariableS Connection Type Variable Type Tier 1 Interest Category Variable Home Internet Website Arts & Entertainment 1075koolfm.com Home Internet Website Arts & Entertainment 8tracks.com Home Internet Website Arts & Entertainment 9gag.com Home Internet Website Arts & Entertainment abs-cbn.com Home Internet Website Arts & Entertainment aetv.com Home Internet Website Arts & Entertainment ago.ca Home Internet Website Arts & Entertainment allmusic.com Home Internet Website Arts & Entertainment amazonvideo.com Home Internet Website Arts & Entertainment amphitheatrecogeco.com Home Internet Website Arts & Entertainment ancestry.ca Home Internet Website Arts & Entertainment ancestry.com Home Internet Website Arts & Entertainment applemusic.com Home Internet Website Arts & Entertainment archambault.ca Home Internet Website Arts & Entertainment archive.org Home Internet Website Arts & Entertainment artnet.com Home Internet Website Arts & Entertainment atomtickets.com Home Internet Website Arts & Entertainment audible.ca Home Internet Website Arts & Entertainment audible.com Home Internet Website Arts & Entertainment audiobooks.com Home Internet Website Arts & Entertainment audioboom.com Home Internet Website Arts & Entertainment bandcamp.com Home Internet Website Arts & Entertainment bandsintown.com Home Internet Website Arts & Entertainment barnesandnoble.com Home Internet Website Arts & Entertainment bellmedia.ca Home Internet Website Arts & Entertainment bgr.com Home Internet Website Arts & Entertainment bibliocommons.com
    [Show full text]
  • Mckinsey on Finance
    McKinsey on Finance Perspectives on Corporate Finance and Strategy Number 59, Summer 2016 2 5 11 Bracing for a new era of The ‘tech bubble’ puzzle How a tech unicorn lower investment returns creates value 17 22 Mergers in the oil ‘ We’ve realized a ten-year patch: Lessons from strategy goal in one year’ past downturns McKinsey on Finance is a Editorial Board: David Copyright © 2016 McKinsey & quarterly publication written by Cogman, Ryan Davies, Marc Company. All rights reserved. corporate-finance experts Goedhart, Chip Hughes, and practitioners at McKinsey Eduardo Kneese, Tim Koller, This publication is not intended & Company. This publication Dan Lovallo, Werner Rehm, to be used as the basis offers readers insights into Dennis Swinford, Marc-Daniel for trading in the shares of any value-creating strategies and Thielen, Robert Uhlaner company or for undertaking the translation of those any other complex or strategies into company Editor: Dennis Swinford significant financial transaction performance. without consulting appropriate Art Direction and Design: professional advisers. This and archived issues of Cary Shoda McKinsey on Finance are No part of this publication Managing Editors: Michael T. available online at McKinsey may be copied or redistributed Borruso, Venetia Simcock .com, where selected articles in any form without the prior written consent of McKinsey & are also available in audio Editorial Production: Company. format. A series of McKinsey Runa Arora, Elizabeth Brown, on Finance podcasts is Heather Byer, Torea Frey, available on iTunes. Heather Hanselman, Katya Petriwsky, John C. Sanchez, Editorial Contact: Dana Sand, Sneha Vats McKinsey_on_Finance@ McKinsey.com Circulation: Diane Black To request permission to Cover photo republish an article, send an © Cozyta/Getty Images email to Quarterly_Reprints@ McKinsey.com.
    [Show full text]
  • YELP INC. (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35444 YELP INC. (Exact name of Registrant as specified in its charter) Delaware 20-1854266 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 140 New Montgomery Street, 9 th Floor San Francisco, California 94105 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (415) 908-3801 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Common Stock, par value $0.000001 per share New York Stock Exchange LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES x NO ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES ¨ NO x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Just Eat/Hungryhouse Appendices and Glossary to the Final Report
    Anticipated acquisition by Just Eat of Hungryhouse Appendices and glossary Appendix A: Terms of reference and conduct of the inquiry Appendix B: Delivery Hero and Hungryhouse group structure and financial performance Appendix C: Documentary evidence relating to the counterfactual Appendix D: Dimensions of competition Appendix E: The economics of multi-sided platforms Appendix F: Econometric analysis Glossary Appendix A: Terms of reference and conduct of the inquiry Terms of reference 1. On 19 May 2017, the CMA referred the anticipated acquisition by Just Eat plc of Hungryhouse Holdings Limited for an in-depth phase 2 inquiry. 1. In exercise of its duty under section 33(1) of the Enterprise Act 2002 (the Act) the Competition and Markets Authority (CMA) believes that it is or may be the case that: (a) arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation, in that: (i) enterprises carried on by, or under the control of, Just Eat plc will cease to be distinct from enterprises carried on by, or under the control of, Hungryhouse Holdings Limited; and (ii) the condition specified in section 23(2)(b) of the Act is satisfied; and (b) the creation of that situation may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom for goods or services, including in the supply of online takeaway ordering aggregation platforms. 2. Therefore, in exercise of its duty under section 33(1) of the Act, the CMA hereby makes
    [Show full text]
  • FUTURE of FOOD a Lighthouse for Future Living, Today Context + People and Market Insights + Emerging Innovations
    FUTURE OF FOOD A Lighthouse for future living, today Context + people and market insights + emerging innovations Home FUTURE OF FOOD | 01 FOREWORD: CREATING THE FUTURE WE WANT If we are to create a world in which 9 billion to spend. That is the reality of the world today. people live well within planetary boundaries, People don’t tend to aspire to less. “ WBCSD is committed to creating a then we need to understand why we live sustainable world – one where 9 billion Nonetheless, we believe that we can work the way we do today. We must understand people can live well, within planetary within this reality – that there are huge the world as it is, if we are to create a more boundaries. This won’t be achieved opportunities available, for business all over sustainable future. through technology alone – it is going the world, and for sustainable development, The cliché is true: we live in a fast-changing in designing solutions for the world as it is. to involve changing the way we live. And world. Globally, people are both choosing, and that’s a good thing – human history is an This “Future of” series from WBCSD aims to having, to adapt their lifestyles accordingly. endless journey of change for the better. provide a perspective that helps to uncover While no-one wants to live unsustainably, and Forward-looking companies are exploring these opportunities. We have done this by many would like to live more sustainably, living how we can make sustainable living looking at the way people need and want to a sustainable lifestyle isn’t a priority for most both possible and desirable, creating live around the world today, before imagining people around the world.
    [Show full text]
  • Amazing Takeaway Experience
    DELIVERY HERO FACT SHEET On a mission to create an amazing In May 2011, CEO Niklas Östberg co-founded Delivery Hero with takeaway the mission to provide an inspirational, personalized and experience simple way of ordering food. $ KEY 弛吐ſ NUMBERS Based in Berlin, Delivery Hero is the leading global online food ordering and VARIETY DIVERSITY INVESTMENTS delivery marketplace. We Delivery Hero operates online To date over €1.4 billion has been employ 6,000+ staff plus marketplaces for food order- +6000 staff from invested into Delivery Hero. The ing and also operates its own company’s largest shareholders thousands of employed food delivery primarily in 50+ +60 nationalities are Naspers, Insight Venture Part- riders across 40+ countries, high-density urban areas around ners, Luxor Capital Group (each of with 35 number one market the world, which allows Delivery is employed in them represented in the superviso- positions. We maintain Hero to include offerings from Berlin HQ alone ry board), and Rocket Internet (no the largest food network in curated restaurants that do not board seat). the world with more than offer food delivery themselves. 150.000 restaurant partners. In 2016 we processed +170 million orders. In May 2017 BUSINESS MODEL we processed +1m order Search 1 on a single day for the first benefit, among other, from time. CUSTOMERS • an inspirational selection of restaurants and dishes • a great takeaway experience driven by easy usage, short HOUSE OF Order 2 delivery times and plenty of individual order options BRANDS Since 2011, Delivery Hero benefit, among others, from grew significantly through RESTAURANTS • access to a large customer a combination of organic base growth and acquisitions.
    [Show full text]
  • Restaurants, Takeaways and Food Delivery Apps
    Restaurants, takeaways and food delivery apps YouGov analysis of British dining habits Contents Introduction 03 Britain’s favourite restaurants (by region) 04 Customer rankings: advocacy, value 06 for money and most improved Profile of takeaway and restaurant 10 regulars The rise of delivery apps 14 Conclusion 16 The tools behind the research 18 +44 (0) 20 7012 6000 ◼ yougov.co.uk ◼ [email protected] 2 Introduction The dining sector is big business in Britain. Nine per cent of the nation eat at a restaurant and order a takeaway at least weekly, with around a quarter of Brits doing both at least once a month. Only 2% of the nation say they never order a takeaway or dine out. Takeaway trends How often do you buy food from a takeaway food outlet, and not eat in the outlet itself? For example, you consume the food at home or elsewhere Takeaway Weekly or Monthly or several Frequency more often times per month Less often Never Weekly or more often 9% 6% 4% 1% Monthly or several times per month 6% 24% 12% 4% Eat out Eat Less often 3% 8% 14% 4% Never 0% 1% 1% 2% (Don’t know = 2%) This paper explores British dining habits: which brands are impressing frequent diners, who’s using food delivery apps, and which restaurants are perceived as offering good quality fare and value for money. +44 (0) 20 7012 6000 ◼ yougov.co.uk ◼ [email protected] 3 02 I Britain’s favourite restaurants (by region) +44 (0) 20 7012 6000 ◼ yougov.co.uk ◼ [email protected] 4 02 I Britain’s favourite restaurants (by region) This map of Britain is based on Ratings data and shows which brands are significantly more popular in certain regions.
    [Show full text]
  • Food Delivery Platforms: Will They Eat the Restaurant Industry's Lunch?
    Food Delivery Platforms: Will they eat the restaurant industry’s lunch? On-demand food delivery platforms have exploded in popularity across both the emerging and developed world. For those restaurant businesses which successfully cater to at-home consumers, delivery has the potential to be a highly valuable source of incremental revenues, albeit typically at a lower margin. Over the longer term, the concentration of customer demand through the dominant ordering platforms raises concerns over the bargaining power of these platforms, their singular control of customer data, and even their potential for vertical integration. Nonetheless, we believe that restaurant businesses have no choice but to embrace this high-growth channel whilst working towards the ideal long-term solution of in-house digital ordering capabilities. Contents Introduction: the rise of food delivery platforms ........................................................................... 2 Opportunities for Chained Restaurant Companies ........................................................................ 6 Threats to Restaurant Operators .................................................................................................... 8 A suggested playbook for QSR businesses ................................................................................... 10 The Arisaig Approach .................................................................................................................... 13 Disclaimer ....................................................................................................................................
    [Show full text]
  • China's Rise in Artificial Intelligence
    EQUITY RESEARCH | August 31, 2017 Piyush Mubayi +852-2978-1677 [email protected] Goldman Sachs (Asia) L.L.C. Elsie Cheng +852-2978-0820 [email protected] China's Rise in Goldman Sachs (Asia) L.L.C. Heath P. Terry, CFA +1-212-357-1849 [email protected] Artificial Intelligence Goldman Sachs & Co. LLC The New New China Andrew Tilton For the exclusive use of [email protected] +852-2978-1802 China has emerged as a major global contender in the field of AI, the apex [email protected] technology of the information era. In this report, we set out China’s Goldman Sachs (Asia) L.L.C. ambitious top-down plans, the factors (talent, data and infrastructure) Tina Hou that make China unique and the companies (Baidu, Alibaba and Tencent) +86(21)2401-8694 that are making it happen. We believe the development of an ‘intelligent [email protected] economy’ and ‘intelligent society’ by 2030 in China has the potential to Beijing Gao Hua Securities drive productivity improvement and GDP growth in the next two decades. Company Limited Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html.
    [Show full text]