The food delivery industry in Europe might be facing an ongoing shakeup as companies seek to perfect online and mobile end-to-end food delivery models. Earlier today (Sept. 6), according to TechCrunch, Tok Tok Tok, a food delivery company that brought sustenance to consumers within one hour, announced that it was closing. The company also announced that its platform had been acquired by a mystery industry “leading player.”
According to the report, Just Eat has purchased some of Tok Tok Tok’s technology assets. Just Eat may be looking for a way to manage drivers and to compete with UberEATS and Deliveroo. Unlike UberEATS and Deliveroo, Just Eat relies on its restaurant partners to deliver the food that consumers order.
A partnership was initiated in France between delivery startup Stuart and Just Eat to provide on-demand delivery for the company’s restaurant app and back-end ordering. However, at the time, the strategic partnership was rumored to be a way for Just Eat to gain market share of restaurants joining its online marketplace who would not otherwise deliver to customers.
Tok Tok Tok had been flailing in a competitive market. Cofounder Serge Alleyne declined to comment, citing a confidentiality agreement with the new platform acquirer, although he did state that the acquisition was “great news.”
He also opined that Tok Tok Tok “had one of the best platforms and technology to sell on the market” and that he expected additional consolidation in a highly competitive on-demand delivery sector.
A shakeup is not surprising, however, because other food delivery services have recently failed, such as Take Eat Easy and Delivery Hero’s Valk Fleet. Could the market be saturated? Time will tell. In the meantime, Deliveroo and UberEATS are also facing a competitor in Amazon. It will be interesting to see the winners in the race to deliver food to hungry consumers.