Food Delivery Tech: Battle for the European Consumer
Food Delivery Tech: Battle for the European Consumer
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March 2017 About Dealroom
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■ Yoram Wijngaarde ([email protected]) Founder & CEO at Dealroom Formerly M&A at Lehman Brothers and NOAH
■ Sara de Miguel ([email protected]) Data Analyst at Dealroom Carlos III University, Madrid
2 About Priori Data
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■ Patrick Kane ([email protected]) Competitive Tracking Founder & CEO at Priori Data Vestar Capital Partners, Morgan Stanley, INSEAD Market Trends ■ Simon Singharaj ([email protected]) Director of Marketing at Priori Data Jumia, Microsoft, EDHEC API Contents
1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Introduction
▪ This report combines proprietary data from Dealroom and Priori Data with annual reports, investor presentations and equity research from About this report Just Eat, Takeaway.com and Rocket Internet. SimilarWeb data was used for online usage ▪ By combining these data-points, a market model was constructed to estimate the size and market share of key European markets
▪ Consumers are seeking convenience, resulting in a drive towards on-demand delivery and away from home-cooking Eating habits ▪ Supermarkets are most likely to lose in this trend. Prepared grocery models (HelloFresh) are gaining scale, but economically not validated yet ▪ Majority of restaurants see trend as “a good thing for business” according to a recent UK survey by Morgan Stanley
Consolidation ▪ Just Eat and Takeaway.com have so far benefitted the most from this trend, through asset-light software-only operations with 50%+ margins ▪ Both outperformed: Just Eat’s share price more than doubled in 2 years since it’s IPO. Takeaway.com is up > 40% since their Oct ‘16 IPO and IPOs ▪ Their model requires #1 or #2 market position to be profitable. Result: a wave of consolidation, and still more M&A anticipated (France?)
Increased ▪ Deliveroo, Uber EATS and Amazon entered the market and scaled rapidly with a model offering full-service logistics ▪ This model involves more operating risk and requires enough population density (and higher order value) to work (Take Eat Easy failed) competition ▪ So far, these new models have not taken share from existing online marketplaces, but rather created a new premium market segment
▪ Delivery Hero (38% Rocket owned) is likely getting ready to IPO. However, it is being challenged in some key markets by Takeaway (Germany, Poland) and Just Eat (Italy). It absorbed loss making Food Panda but still lacks a clear cash-cow market position anywhere ▪ Conceivable that Delivery Hero is instead acquired by someone like Priceline, Expedia, Recruit Challenges ▪ Deliveroo was hit with strikes after trying to convert its drivers to a pay-per-delivery wage ▪ Uber lost some of its aura of invincibility. But now another powerhouse is also around the corner: Amazon ▪ Fully integrated models with own kitchen have struggled to make economics work (Spoonrocket closed) but others (Sprig, Maple, Forky) are working to get the economics right ▪ Just Eat and Takeaway.com has so far enjoyed a rapid path to profitability (Takeaway.com built a €1 billion business in relatively small market) ▪ There is still big upside, as online penetration of delivery and take-out is only about 15% in many parts of Europe (50% in UK and 30% in NL) Outlook ▪ The various models (Deliveroo vs. Just Eat) might soon converge: Just Eat is already starting to offer logistics services to restaurants to continue expanding their footprint. Delivery Hero is heavily investing in the roll-out of Foodora, its full-service logistics brand ▪ The last mile and waste reduction are key to further unlocking the potential: high hopes for autonomous delivery (e.g. Starship Technologies)
5 Eating habits are evolving. Convenience is the driver
Prepared Restaurant Meal Grocery Delivery Food Delivery Agritech Waste Reducing Groceries Bookings Substitutes
Delivery & portal Own fleet
Delivery software
Online Supermarkets:
Vertically integrated :
6 Contents
1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Key considerations between the various models. Operating risk ranging from low to very high Home cooking No cooking
Supermarkets Prepared groceries Software only Own fleet & logistics Vertically integrated
Online supermarket eCommerce Weekly boxes of around €50-100 / box 12-15% commission / restaurant does delivery 30% commission + delivery fee Own kitchen and delivery logistics
Positives: Positives: Positives: Positives: Positives: v Huge market v Nearly 1 million active subscribers v Just Eat and Takeaway beating expectations v Ability to advertise on packaging and on v Entire GMV equals revenue v Migration online Avg € 750 revenue per sub v Autonomous delivery potential delivery vehicles v Domino’s UK has validated this business v High customer life-time value v Starting to focus on profitability by v New entrants (Deliveroo, Amazon, Uber are v Autonomous delivery potential model, at scale: v Revenues growing 15% YoY reducing marketing spend targeting different premium segment, so far) v Own kitchen to optimize fleet utilisation 10% revenue growth v EBITDA margin 7% (but: churn and LTV are undisclosed) V EBITDA margin 50-60% in strong markets v Model works best in dense + affluent areas 25% EBITDA margin v Positioned as premium
Considerations: Considerations: Considerations: Considerations: Considerations: x EBITDA-Capex negative x Still EBITDA negative. Cost structure: x Difficult economics in competitive and new x Foodora is highly loss making for Delivery Hero, x Operating risk: capacity utilization, x Cooking is losing its appeal Cost of goods 43% markets as low as 100% (FoodPanda) or close to but it continues to invest heavily in roll-out minimal waste are key x Prevailing wisdom in tech circles that Fulfilment cost 35-40% 0% (Germany) x Take Eat Easy closed operations x Spoonrocket this is a winner-takes-all logistics play Marketing cost: 30% (discretionary) x May need to soon invest in logistics to continue x Dealing with rider strikes x Less choice for consumer (one menu) that may well become dominated by Other opex: 3% growth) x Amazon moving in too Amazon = => Negative 15% EBITDA margin
Market verdict: Market verdict: Market verdict: Market verdict: Market verdict: - Market values Ocado at EBITDA - Push to profitability, which will curb - Strong performance of public players - Strong VC backing of Deliveroo model - Domino’s is valued 17-18x EBITDA multiples similar to Amazon growth - No clear sign of Delivery Hero IPO yet - VCs hesitant following SpoonRocket (17-18x 2017E EBITDA)
8 Unit economics vary widely per model and depending on market position and growth stage
Prepared groceries Software only (Just Eat, Takeaway, Own fleet (Deliveroo, Fully integrated (Forky, (HelloFresh) Delivery Hero) Uber EATS) Sprig, Maple) Developed Lower Affluent & Growth Developing Market Developing Developed Per order: Steady state market, but density densely phase markets leadership market leadership competitive areas populated Order value € 75.0 € 75.0 € 12.0 € 20.0 € 20.0 € 20.0 € 30.0 € 10.0 € 20.0 x Commission (1) 100% 100% 12% 12% 15% 30% 35% 100% 100% = Net revenue per order € 75.0 € 75.0 € 1.4 € 2.4 € 3.0 € 6.0 € 10.5 € 10.0 € 20.0
-/- COGS 45% 40% – – – – – 40% 30% -/- Labour / packaging 35% 30% – – – – – 35% 30% = Product margin per order € 15.0 € 22.5 € 1.4 € 2.4 € 3.0 € 6.0 € 10.5 € 2.5 € 8.0
-/- Delivery (€ 1.5) (€ 1.5) - - - (€ 5.0) (€ 4.0) (€ 5.0) (€ 3.0) = Gross margin per order € 13.5 € 21.0 € 1.4 € 2.4 € 3.0 € 1.0 € 6.5 (€ 2.5) € 5.0
-/- Marketing (€ 25.0) (€ 5.0) (€ 1.8) (€ 1.5) (€ 0.5) (€ 2.5) (€ 1.0) (€ 2.5) (€ 1.0) -/- Other unit costs (2) (€ 1.5) (€ 1.5) (€ 1.0) (€ 1.0) (€ 1.0) (€ 1.5) (€ 1.5) (€ 1.5) (€ 1.5) = EBITDA per unit (€ 13.0) € 14.5 (€ 1.3) (€ 0.1) € 1.5 (€ 3.0) € 4.0 (€ 6.5) € 2.5
50% 38% 19% 13% % EBITDA margins: (4%) (17%) (50%) Source: Dealroom estimates, annual reports, interviews. Delivery costs assume 2.5-3 rides per hour and €10/hour wage. (65%) 1. Blended rate net of payment fees. (91%) 2. Estimate by Morgan Stanley, Dealroom (based on public peers).
9 Profitability for meal kit delivery businesses: potential path to profitability for HelloFresh
Today actual Steady state (1) Today actual
120% Negative General & Gross profit Loss-making 12% EBITDA Admin costs: Positive 9% Negative 10% & net loss margin (5%) 5% seem low EBITDA EBITDA margin (7%) margin Profitable (10%) General & 100% 28% Administrative Run-rate Negative Growth phase: 9% Run-rate costs much higher. 28% 17% revenues circa 7% gross higher than 5% 5% revenues circa Potentially €1 billion margin Marketing Blue Apron $1 billion includes quasi- Positive 7% HelloFresh 80% 15% Positive direct costs. 1,250 active gross claims it can go 943 active 14% Marketing as low as 5% 17% gross customers Question is margin customers Marketing Higher than margin how much Blue Apron. 60% Avg. revenue 37% revenue Avg. revenue HelloFresh per customer growth would 30% Blue Apron per customer = Fulfilment sees upside 29% = circa €175 in be impacted by level circa $250 in (labor, delivery) Fulfilment Q2 2017 reduced Q2 2017 Fulfilment 40% marketing Both revenues spend Revenues still and customers grew (only) growing at Cost of goods 18% YoY in Q2 healthy 53% 20% 41% sold: in line 41% YoY with Blue Number of 39% Cost of Apron Cost of customers Cost of goods goods declined from goods 1,036 in Q1 – Income Profit margin Expenses Income Profit margin Expenses Income Profit margin Expenses As per 2017 H1 . Illustrative Dealroom estimates . As per 2017 Q2
Source: Dealroom estimates, company reports.
10 Unit economics in food delivery: path to profitability for Deliveroo (and Delivery Hero’s Foodora)
Order-only platform model (2) Integrated delivery model (3)
Amounts per order
€ 12.0
€ 10.5 38% profit € 10.0 € 9.0 50% loss Once market leadership 91% loss margin € 1.5 € 8.0 is achieved, marketing before general Other costs drop significantly, expenses occurs and margins well above € 6.5 in some new € 6.0 50% are the norm € 2.5 € 6.0 markets Marketing Avg. order €30 € 1.5 Other x 35% commission € 1.0 Marketing € 4.0 50% profit 91% loss € 3.0 € 2.8 Avg. order €20 Delivery costs Delivery costs x 30% commission (€10/hour, € 5.0 (€10/hour, € 1.0 Other unit 2 rides per 2.5 rides per € 2.0 € 1.4 Other € 1.5 € 4.0 costs (1) Avg. order €20 hour) hour) x 15% commission Avg. order €12 € 1.8 € 1.0 x 12% commission Marketing € 0.5 - Income Expenses Income Expenses Income Expenses Income Expenses New markets . Market leadership . New markets . Market leadership Source: Dealroom estimates, company reports. 1. Other unit costs. Based on Just Eat reporting, via Equity Research. 2. Based on public reporting by Delivery Hero, Just Eat and Takeaway.com 3. Based on public reporting by Delivery Hero (Foodora), equity research and Dealroom estimates. 11 New entrants have so far expanded market adding new (premium) segments, rather than challenging
Copenhagen HQ London San Francisco Moscow Zurich Helsinki Athens
Model Software + feel & logistics Software + feel & logistics Software + portal Software + portal Software + logistics Full service Recycle Funding (€M) € 430M N/A € 10.9M N/A € 12.4M € 800K N/A Launch year 2012 2014 2011 2008 2014 2014 2015 Monthly web users (1) 7.5M (+90%) 3M (+106%) 2.4M (+85%) 0.6 M 55 K 0.11M 63K Cumulative app installs (1) 2.2M (+1,000% growth) 1.3M 5.7 M (+60% growth) N/A 0.27 M N/A 1M
2,134 employees Other KPIs Annual Revenues: £ 130M N/A 52 employees N/A 85 employees 22 employees 62 employees Valuation £ 761M
Europe: Amsterdam, Europe: Belgium, France, Bordeaux, Brussels, Europe: UK, Denmark, Germany, Italy, Ireland, London, Lyon, Madrid, Countries Russia Switzerland Estonia, Sweden, Finland Greece Norway, Germany, France, Netherlands, UK, Spain (3) Manchester, Milan, Switzerland, Austria (5) Moscow, Paris, Stockholm, Vienna, Warsaw (4)
1 M app installs from zero installs 12 months ago. 1.3M app installs from zero Partnership with Just Eat installs 12 months ago. (2011) #2 in UK, Netherlands, #2 in Greece after Delivery Expansion to 7 countries in Traction #1 in Russia #1 in Finland France after Just Eat Hero 2 years. Biggest growth in France #1 in Switzerland and UK #2 in Denmark after Just Eat
Source: Dealroom estimates, press releases, SimilarWeb, Priori Data. 1. In Europe. 2. ROW: Australia, Hong Kong, Singapore, UAE. 3. ROW: United states, Canada, Colombia (Bogotá), Brazil (São Paulo), Australia, Thailand, UAE, Hong Kong, Singapore, Taiwan, Japan (Tokyo), South Africa. 4. RWO: USA
12 Value is created in leadership markets, where the earnings are generated
Scale Countries 15 11 40 1 6 Restaurants 62K 29K 150K 35K 1K + Gross merchandise value (GMV) € 3.4B € 1.2B € 3.8B € 3.6B € 0.5B % average take-rate 16% 12% 13% 16% 100% Net revenues (2017E) € 545M € 147M € 495M € 579M € 490M
Market position Market leadership in UK, Denmark, Italy Netherlands Sw eden, Finland USA UK Market leader EBITDA margin 50% (UK) 60% profitable + EBITDA margin in new markets <0% <0% <0% Group EBITDA margin (2017E) 38% <0% profitable ex Foodora 29% 25%
Growth = % revenue growth ('16-'18E) 23% 30% 30% 18% 10% Valuation Enterprise value € 4.4B € 1.2B c. €3.2 billion € 2.4B € 2.2B EV / Net sales (2017E) 8.1x 8.4x 7.5x 4.9x 4.4x EV / EBITDA (2017E) 21.3x - – 16.9x 17.6x
Source: annual reports, equity research, Bloomberg. 13 Contents
1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Market leadership is key for profitability. Result: consolidation and disposal of loss-making markets
HQ London Berlin Berlin Amsterdam
Selected brands
W. Europe: Sindelantal.com, Fillmybelly, Meal2go, W. Europe: HungryHouse UK, EatNow UK E. Europe: Delivery Club, Pauza.hr, Donesi.com, Clickeat.it, Urbanbite, AlloResto, Orogo, Clicca e E. Europe: Foodarena.ch, Efood.gr, Damejidlo, Netpincer.hu. Mangia, DeliveRex, Hellofood IT, Takeaway UK, Jidloted, OnlinePizza Norden (OnlinePizza, Mat24, W. Europe: Thuisbezorgd.nl, Pizza.fr, Pizza.be, Rsto-in Hungryhouse UK, La Nevera Roja, PizzaBo IT, PizzaOnline, PizzaPortal, Mjam, WillEssen), LatAm: PedidosYa, SeMeAntoja, Superantojo, Entrega BE, TanteBep.nl, Pizza.pt, Just Eat BE & NL, food- Eatcity.ie. Lieferheld.de, Pizza.de, 9coockies, Foodora. Delivery, Peixe Urbano, DeliYami, Janamesa. express. Foodpanda. Acquisitions LatAm: ifood (JV), Sindelantal.mx, Hellofood MX & Middle East: 24h.ae, Hungerstation, EatOye. E. Europe: Lieferando, Lieferservice.ch, Pyszne.pl, BR, Foodpanda MX & BR LatAm: Hellofood LatAm, Click delivery, Subdelivery, Lieferservice.de, Resto-in DE India: Tastykhana, Just Eat India. PedidosYa. Canada & USA: Grubcanada, Yummyweb, Orderit.ca, Asia: Vietnammm. Asia: Singapore-Dine, Food Runner, Koziness, Skipthedishes. Middle East: Talabat.com, Yameksepeti. Delivery.com HK Australia & New Zeland: MenuLog Asia: Baedaltong. E. Europe: Delivery Club (to Mail.ru) E. Europe: Hungryhouse UK (to Just Eat) W. Europe: Just Eat BE & NL (to Takeaway) India: Foodpanda Indonesia closes down LatAm: Tastykhana, PedidosYa MX, SeMeAntoja, E. Europe: Online Pizza (Sweden, Minority stake) Disposals Superantojo (to Foodpanda) LatAm: Hello Food MX & BR (to Just Eat) W.Europe: Takeaway.com UK (to Just Eat) LatAm: Hellofood Brazil (to ifood) Hellofood Argentina, Chile, Colombia, Ecuador and China: Waimai Chaoren (Chinnese subsidiary) Peru (to Delivery Hero) India: Just Eat India (to Foodpanda) Asia: Foodpanda Vietnam (to Vietnammm)
15 Consolidation wave started in 2014 and still ongoing. France and Italy could be next
HelloFresh €0.6B
Quandoo €210M Just Eat La Nevera Bookatable Roja €80M €108M Delivery Hero Yemeksepeti Takeaway Hungryhouse iens.nl €10M Kochzauber Foodinho €0.5B €1.0B IPO €240M Takeaway.com SinDelantal e-food.gr La Nevera Just Eat BE/NL Delivery Club Spotistic €4M €12M Roja €23M €91M
DameJidlo Volo.de Uncover ES Food Foodist €4M Mat.se €3M
Just Eat €1.8B Clicca e Takeaway.co L'Epicier Jidloted Vinguiden Gourmondo IPO Mangia m UK Toqué
LaFourchette Linas Matk. Wine & Restau- restOpolis Deliverex Table-booker Quick Resto €127M €30M Cocktail Gd. rantes.com
Lieferando Resto-In BE & MyTable Volo Foodora Resto-in Pizzabo WirWinzer €50M DE
Pizza.de Delivery Club Rocket €6.7B Cookening BestTables Todovino.com KochAbo Food Express RetNemt Vinocasting €300M
Yemeksepeti 5CUPS and Clickdelivery. Restaurant- Restaurantes MySwiss- Gold&Green Hungryhouse Foodist Lieferservice ClickDelivery Pizzabo Delinero Todovino iqPOSitive Foodpanda €40M some sugar gr €3M Kritik.de .com Chocolate Foods
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016
1. Assumption of majority stake by Rocket Internet. 16 Europe post consolidation: France and Italy remain as crowded markets
Uber EATS Amsterdam, Bordeaux, Dominantly #1 in UK, Italy, Spain, Portugal, Denmark Brussels, London, Lyon, Madrid, Manchester, Milan, Also #1 France Moscow, Paris, Stockholm, Vienna, Warsaw
#1 in Germany (not dominant), Sweden, Finland #2 in Poland Present across Eastern Europe since FoodPanda acquisition in December 2016
Present across Eastern Europe (and Asia and LatAm) Focus on emerging markets
Dominantly #1 in Benelux and Poland Strong #2 in Germany
Leader in premium segment Strong #2 in France
17 Contents
1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits UK is by far largest market. Massive growth potential in Europe via online penetration and order frequency
People ordering food Market size (GMV) (1) Online penetration Online market (GMV) (1)
Germany 56M UK € 7.2B UK 49.1% UK € 3.5B
UK 46M Germany € 4.5B Netherlands 32.7% Germany € 0.8B
Russia 43M France € 4.3B Denmark 27.4% France € 0.6B UK is by far the largest market, France 33M Spain € 3.0B Poland 23.4% Netherlands € 0.5B thanks to high order frequency and online Italy 30M Italy € 2.5B Belgium 19.1% Spain € 0.4B penetration. Spain 23M Netherlands € 1.5B Austria 19.0% Italy € 0.2B Online Poland 19M Poland € 1.2B Offline Finland 17.3% Russia € 0.2B
Netherlands 10M Russia € 1.1B Switzerland 17.0% Belgium € 0.2B
Belgium 6M Austria € 0.8B Sweden 16.2% Vast majority of Austria € 0.2B Total market offline (80%+) (2) is Austria 6M Belgium € 0.8B Germany 15.2% Denmark € 0.2B (offline and take-out collection online) is Sweden 5M Sweden € 0.8B Russia 13.5% growing about Sweden € 0.1B 5% per year. Switzerland 4M Switzerland € 0.6B France 13.4% Poland € 0.1B
Denmark 3M Denmark € 0.5B Spain 11.9% Switzerland € 0.1B
Finland 3M Norway € 0.4B Norway 10.8% Finland € 0.1B
Norway 3M Finland € 0.4B Italy 5.3% Norway € 0.0B
Estimates based 1. GMV = Gross Market Value. 2. Dealroom estimate based on Morgan Stanley UK survey report. 19 Just Eat leads UK, Spain, Italy, Denmark. Takeaway leads Benelux and Poland
Just Eat Delivery Hero Takeaway.com Deliveroo Uber EATS Other
UK Domino’s, Pizza Hut, others € 3,538M
Germany € 784M Gross market value (GMV) France € 578M Germany € 784M Netherlands € 491M France € 578M Spain € 357M Netherlands € 491M
Italy € 182M Spain € 357M Italy € 182M Takeaway.com has Russia € 174M built a €1 billion+ Russia Delivery Club € 174M business out of #1 Netherlands Belgium € 153M Sweden € 160M position.
Austria € 152M Belgium € 153M Austria € 152M Denmark € 150M Denmark € 150M Sweden € 130M Poland € 120M
Poland € 120M Switzerland Eat.ch € 102M Finland WOLT € 70M Switzerland € 102M Norway € 43M Finland € 100M € 0M € 100M € 200M € 300M € 400M € 500M € 600M € 700M € 800M Norway € 43M
20 Takeaway and Delivery going head to head in Germany. Just Eat maintaining growth in UK
United Kingdom Germany
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
6 M 18 M Just Eat 5 M 15 M Delivery Hero Delivery Hero 4 M 12 M Takeaway Just Eat Takeaway 9 M 3 M
6 M Deliveroo 2 M Deliveroo (1.1 M) 3 M Uber Eats (0.4 M) 1 M Deliveroo (0.1 M) Deliveroo (0.3 M) Uber Eats (0.02 M) 0 M 0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Netherlands Switzerland
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
6 M 1.2 M
5 M 1.0 M
4 M 0.8 M Takeaway 3 M 0.6 M Eat.ch Takeaway 2 M 0.4 M Takeaway (0.06 M) 1 M Deliveroo (0.2 M) Takeaway (0.05 M) Deliveroo (0.08 M) 0.2 M Delivery Hero (0.06 M) Delivery Hero (0.05 M) 0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
21 France is crowded market, consolidation likely. In Italy, Just Eat is doing very well
France Spain
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
3.0 M 3.0 M 2.5 M Just Eat 2.5 M Just Eat 2.0 M Deliveroo 2.0 M 1.5 M 1.5 M Telepizza 1.0 M Just Eat (0.9 M) Telepizza (0.9 M) 1.0 M Delivery Hero (0.4 M) Takeaway (0.6 M) Deliveroo (0.5 M) 0.5 M Uber Eats (0.4 M) Deliveroo (0.5 M) Delivery Hero (0.2 M) 0.5 M Just Eat (1 M) 0.0 M Deliveroo (0.2 M) Takeaway (0.1 M) 0.0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Italy Greece
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
3.0 M Delivery Hero 2.5 M
2.0 M
1.5 M
1.0 M
0.5 M Forky (0.1 M) 0.0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
22 Takeaway is outperforming in Poland. Mobile penetration in Russia is growing fast
Russia Poland
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
6 M Delivery Club 6 M
5 M 5 M
4 M 4 M Takeaway
3 M 3 M Delivery Club 2 M 2 M Delivery- Hero (1 M) Takeaway (0.70 M) 1 M 1 M
0 M 0 M Delivery- Hero (0.32) Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Czech Republic Turkey
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
6 M 18 M
5 M 17 M
4 M 16 M Delivery- Hero
3 M 15 M
2 M Delivery Hero 14 M
1 M 13 M
0 M 12 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
23 Nordics so far less crowded. Growth in relatively calm markets. Wolt is a strong local player Norway Sweden
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
2.4 M 0.18 M 2.0 M 0.15 M 1.6 M 0.12 M Just Eat Just Eat 1.2 M 0.09 M Delivery Hero Delivery Hero 0.8 M 0.06 M Delivery Hero Delivery Hero 0.4 M 0.03 M Uber Eats 0.0 M 0.00 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Finland Denmark
2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data)
1.2 M
1.0 M
0.8 M Just Eat 0.6 M Just Eat 0.4 M Hungry.DK 0.2 M
0.0 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
24 Contents
1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Mega-rounds have slowed down due to focus on profitability. But number of rounds is still increasing
Annual food tech funding Quarterly food tech funding
€ 834M 49 € 1,391M 163 € 814M
Amount raised (€M) € 1,222M Delivery Hero Top 3 rounds (€M) € 496M 40 Rocket Internet Delivery Hero 38 Rocket Internet € 1,048M Total number of rounds €405M €496M 36 € 405M 35 109 104 Jumia 30 HelloFresh € 300M 28 € 130M 27 26 25 Food Panda 24 Delivery Hero € 396M € 104M Deliveroo € 318M € 250M € 351M 66 20 20 Delivery Hero 18 16 €318M Takeaway HelloFresh 15 Deliveroo € 256M Jumia Deliveroo € 94M € 85M €91M € 244M HelloFresh €300M €250M 41 €130M 11 Delivery 10 Takeaway Hero € 174M € 171M € 242M 9 €94M €100M € 146M € 135M Foodpanda HelloFresh € 130M € 123M HelloFresh Delivery Hero € 46M 6 Delivery €104M €77M € 144M Deliveroo €85M Just Eat € 42M Just Eat € 80M Hero Foodpanda Jumia Delivery Hero Foodpanda €91M Delivery Hero € 25M Delivery Hero €46M €77M €91M €75M Jumia € 46M € 50M Delivery Hero €80M €55M Deliveroo €50M € 27M € 36M HelloFresh €64M Delivery Hero €27M € 24M € 20M € 12M € 3M €46M €46M
2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016
26 A large number of VCs are still heavily invested in the Food Tech space Investors Selected top funded tech companies
Delivery Hero €2-4 billion valuation € 1,236M Fabrice Grinda, Oleg Tscheltzoff
Deliveroo € 431M Valued over $1 billion Neil Rimer
HelloFresh € 353M Majority owned by Rocket. Focus now on profitability Thomas Griesel
Foodpanda € 293M Folded into Delivery Hero at €500M valuation Kiren Tanna, Benjamin Bauer, Ralf Wenzel, Masoud Kamali, Ralf Wenzel, Masoud Kamali
Velocity € 35M
Shukri Shammas, Tom Glocer, DIG Investments, Alex Madonald
Vivino € 33M
Henrik Rosendahl, Janus Friis, Suranga Chandratillake
Gousto € 31M Mark Evans
27 Selected top VC-backed exits in FoodTech so far
Company Transaction Investors
Just Eat £ 1.5B IPO
Takeaway € 1.B IPO
Yemeksepeti $ 589M acquisition by Delivery Hero
LaFourchette $ 140M acquisition by TripAdvisor
Quandoo € 210M acquisition by Recruit Holdings
La nevera roja € 80M acquisition by just eat
Bookatable € 108M acquisition by Michelin
Delivery Club $ 100M acquisition by mail.ru group More online resources Food Companies Food Exits
Food Funding Rounds Food Map
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