Written By Just Eat, one of the world’s leading online food delivery companies, saw a decline in orders in the first quarter of 2021, causing shares to drop despite an optimistic outlook upgrade.
The London-based company reported a 7.4% drop in orders in the first three months of the year compared to the same period in 2020. Just Eat attributed the decline to the reopening of restaurants in several markets and the easing of COVID-19 restrictions, which led to customers dining out instead of ordering delivery.
Despite the decline in orders, Just Eat reported strong financial performance, with revenue increasing by 52% to £1.13 billion ($1.56 billion) in the first quarter, driven by a surge in demand for online food delivery during the pandemic.
Just Eat CEO, Jitse Groen, remained optimistic about the company’s future, citing the strong financial performance and the continued growth potential in the food delivery market. Groen also highlighted the company’s efforts to expand into new markets and invest in technology to enhance the customer experience.
However, the optimistic outlook upgrade was not enough to prevent a drop in Just Eat’s shares, which fell by nearly 5% following the announcement of the decline in orders. Investors expressed concerns about the company’s ability to maintain growth and compete in a crowded market with the easing of COVID-19 restrictions.
Just Eat faces stiff competition in the online food delivery market from rivals such as Uber Eats, Deliveroo, and Grubhub, who have also experienced strong growth during the pandemic.
The company has been making efforts to differentiate itself from its competitors by expanding its range of delivery options, including grocery and alcohol delivery services, and partnering with restaurants to offer exclusive deals to customers.
Despite the challenges, Just Eat remains one of the leading players in the global online food delivery market, with a presence in over 20 countries and partnerships with over 300,000 restaurants.
As the pandemic continues to impact the food industry, it remains to be seen how Just Eat and other online food delivery companies will adapt to changing consumer behavior and evolving market conditions.
