The U.K. food delivery competition just heated up.
Startup takeaway-ordering company Just Eat has shared plans to move up a notch to take on bigger competitors like Deliveroo and UberEats. While Just Eat typically works with smaller restaurants, its interim chief executive shared the news that it is quietly running tests with casual dining restaurant chains.
During this beta test time, Just Eat has not confirmed which U.K. restaurants it is working with.
Following Just Eat’s earning report for the midpoint of the year, the company is planning to invest its money into increasing its presence with branded U.K. restaurants. In its earnings Just Eat saw a 44 percent increase in its revenue up to £247 million, which is £15 million above analysts’ projected £232 million estimates. After turbulent times for the company due to management restructuring, the news that Just Eat beat out estimates is likely a sign that the delivery services market is strong in the U.K.
This new focus on upping its game to larger restaurant chains may be a result of UberEats moving into its territory by offering McDonalds as a food delivery option.
While Just Eat’s interim chief executive Paul Harrison did not directly mention it was going after the Deliveroo or UberEats market, he did confirm that the company wants to “ensure our customers have no reason to go anywhere other than Just Eat.”
With more people opting for eating out than cooking at home, it’s likely that we’ll continue to see the delivery services space grow in both competition and revenue over the next few years.