Interview
Jitse Groen, CEO of Just Eat Takeaway.com
- Yitze Groen founded Takeaway.com in 2000 at age 21 as a student to solve the problem of ordering food for a family party, noting that early growth was severely constrained by the lack of home broadband internet until 2003.
- In the first two years, the platform processed approximately 200 orders per day, utilizing the university's research network for experimentation before consumer adoption could occur.
- The company received its first external investment in 2006 from the Danish company Just Eat, which was critical for financing customer acquisition in a sector where prior capital did not exist.
- Groen initially relied on search engines like AltaVista and physical leaflets for marketing, as paid advertising channels were not viable due to a lack of budget.
- In 2007, the company launched billboard advertising on Dutch highways, a costly experiment that failed to drive immediate order volume but successfully increased brand awareness over time.
- By 2012, the company began international expansion, opening operations in Brussels and Germany without a central strategic plan, driven merely by the feasibility of translation.
- European expansion was significantly less efficient than domestic operations, with Groen estimating that marketing spend yielded 9 euros back for every 10 euros invested in the Netherlands, compared to only 1 euro back in Germany.
- To fund further growth beyond the Netherlands, Groen leveraged consistent EBITDA profits from the Dutch market, which is the third largest in Europe but the largest food delivery market in the continent by volume.
- The decision to raise external capital in 2012 was triggered by two strategic risks: the potential acquisition of the business by competitors (specifically Just Eat, then the global market leader) or a new entrant disrupting the Dutch monopoly.
- Competition in the German market intensified with the rise of Delivery Hero and Pizzaradi, prompting the need for capital to overtake incumbents.
- The company merged with Just Eat, a process complicated by competing bidders, eventually leading to the formation of the current largest food delivery entity outside of China.
- In 2024, Just Eat Takeaway announced an acquisition of Grubhub to enter the US market, viewing the US as the "new Germany" due to its fragmented competitive landscape.
- The US market currently features only three dominant players compared to approximately 30 competitors in Europe, a consolidation dynamic the company believes is incomprehensible and offers a significant growth opportunity.
- The company is prioritizing expansion in profitable positions and adjacent markets in the US, rejecting the strategy of funding unprofitable customer acquisition.
- Groen expresses strong skepticism regarding the "quick commerce" grocery delivery business model, citing negative gross margins and unsustainable unit economics in Europe.
- Delivery costs in Europe average €14–€15 per hour, with drivers completing only two drops per hour, resulting in a delivery cost of approximately €7 per order before product costs are considered.
- Groen predicts that grocery delivery volumes driven by pandemic-era demand will decline significantly once the crisis subsides, as the current business models rely on non-viable price points.
- Food tech penetration rates vary by market, standing at 34% in the Netherlands, 15% in Germany, with a target to reach 70–80% in the Netherlands over the coming years.
- The sector is expected to see a dramatic shift away from phone orders toward digital platforms, alongside an expansion in ordering "moments" from primarily dinner to include lunch and breakfast.
- Just Eat Takeaway maintains a competitive advantage by keeping logistical costs lower than competitors, leveraging a marketplace model where restaurants absorb high street costs.
- Groen advises entrepreneurs to prioritize focus and dedication, noting that it took the company seven years to achieve what appeared to be a successful status to the public.
- Despite having the logistical capability to enter the grocery market with an estimated 5 million orders, the company declined to do so to avoid distraction from its core mission.
- The company operates under the principle that it must remain the lowest-cost provider for consumers to ensure differentiation in a market with identical product offerings.