More Delivery Layoffs on the Horizon as Just Eat Eyes French Restructure

Just Eat, France, delivery, jobs, restructuring

Just Eat may eliminate 350 jobs in France due to “difficult market dynamics” in the country, although the plan, which would involve firing permanent delivery staff in 26 cities across France, is still being negotiated with unions.

According to a Bloomberg report Wednesday (July 20), Just Eat is exploring its options in these cities and could end up outsourcing its delivery operations to other companies, a spokesperson said. Just Eat will continue to run an in-house delivery service in Paris, the report noted.

In its original model, Just Eat matched customers to restaurants and let the eateries deliver themselves. But in recent years, the company has invested in its own logistics network of couriers delivering meals, meaning that it more closely resembles the model of rivals Uber Eats and Deliveroo.

Across the food delivery sector, companies are experiencing lower than expected revenues after the industry experienced rapid growth during the pandemic. For instance, Deliveroo cut this year’s projections for order growth by more than half this week.

In the world of quick commerce grocery delivery, platforms like Gorillas, GoPuff and Zapp have all scaled back their operations in recent months, either through layoffs or by withdrawing from certain areas.

As PYMNTS reported last month in an article on the grocery delivery space in London, the streamlining of logistics operations is a part of delivery services’ efforts to firm up their presence in the most profitable markets.

Related: Battle for London Rages on as Q-Commerce Eyes Path to Profit

With competition still hot in places like London and Paris, delivery firms are doubling down on these key cities in an effort to establish dominance. For employees in smaller cities, however, the latest focus on profitability and strategic emphasis on big cities is leaving many without a job.

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