Specialist
Global C-level executive at Just Eat plc
Agenda
- Medium-term growth outlook for marketplace vs end-to-end delivery in major European markets
- Key drivers of the profitability of full delivery services
- Impact of innovations such as delivery kitchens on the market
- Benchmarking major European players
Questions
1.
What do you think it takes to dominate the online food delivery industry long-term and what long- term market structure do you foresee?
2.
You mentioned that the case for global M&A isn’t particularly compelling in terms of potential synergies. Could you elaborate on that?
3.
What is your take on the debate on hybrid models, marketplaces plus delivery, vs a marketplace-only or a delivery-only approach? What strategies do you think are viable and which are a route to long-term market dominance?
4.
You seem to suggest that hybrid models are the only way to get it right. Is that fair to say?
5.
What are the implications in terms of business models, strategies and regions of so many well-capitalised, well-funded players competing in the same territory?
6.
How disciplined do you think the players you mentioned are in their expansion?
7.
What metrics or KPIs do players typically use to assess their expansion projects in this industry? Is there a distinction between the marketplace business and the delivery business in that sense?
8.
Are there any areas of market activity where you think business will simply never be particularly profitable because of factors such as basket sizes?
9.
Are there markets where you see some of these characteristics as being applicable where you think companies are fighting a losing battle because of the underlying economics?
10.
Is there a threshold for basket size for the full delivery business model that you think is too low?
11.
Do you think we have to wait for Deliveroo or Uber Eats to go public before there is a market where behaviour gets more rational on aggregate?
12.
How would you break down or approach the problem of take rate evolution over the next 3-5 years?
13.
What is your response to those in the market that foresee a categorically deflationary picture for delivery over the next few years? Is that a fair position to take, given the logic of competition?
14.
How likely do you think it is that QSRs [quick-serve restaurants] such as Burger King or KFC might take online food delivery in-house?
15.
How large do you think the moats of the established players are in the context of heightened competition, especially from these delivery models?
16.
How well do you think the major European players are balancing growth vs profitability? How have you viewed this trade-off throughout your career?
17.
Considering the environment that you have described, the strategies of the major players and the fact that there are some private, very well-funded and well-capitalised players that are gunning for growth, how much pressure do you expect in the medium term for major players’ EBITDA margins?
18.
Given the structural evolution of the market, what do you expect terminal EBITDA margins to look like in this industry in the longer term?
19.
How do you think about the total addressable market or how have you come to think about that over time?
20.
How would you recommend analysts try to get sensible numbers on the total addressable market ?
21.
Does the local nature of this delivery business model make it more vulnerable to attack from big tech companies throwing all of their resources in a given place?
22.
How would you compare the online food delivery business to other internet-enabled businesses and business models? How does it differ in growth prospects, total addressable market and the importance of the quality of the business model for both marketplace and delivery?
23.
How big a threat do you think technology platforms such as OrderYoyo, ChowNow and Preoday are in the way they help or allow independent restaurants to set up their own online ordering systems at really low cost?
24.
What one or two core ideas would you want our audience to walk away with today on the competitive landscape, the way in which you see that evolving and what it takes to dominate the industry longer-term?
