Fri. Nov 22nd, 2019

Market owners in the global home-based food war

About a dozen companies at world lead the market of delivery, home delivery. Some have gone public, others have not, and most have not yet found a way to obtain benefits.

The sector is in full growth in Spain. The turnover generated by the business in 2018 was 555 million euros, an increase of 158%, according to data from the employer Adigital. The main platforms that have benefited from this rise are Just eat, Balloon, Deliveroo Y Uber Eats, in this order, leaders in the Spanish market according to sources from the consulting firm Kantar.

From Barcelona

Glovo, the only one in Spain, a market of 555 million

Of these four, only Glovo is Spanish. Founded in 2015 by Oscar Pierre, is start-up Barcelona has expanded through Spain, Europe, Latin America and the Middle East. According to Bloomberg, Deliveroo and Uber might be interested in absorbing it.

In Spain, the margin that platforms have to grow is still large. According to Adigital, only 15% of the delivery of food at home is articulated through applications. The remaining 85% (3.145 million euros) is still made through telephone calls.

The old continent

Europe, pending Just Eat with 12,500 million at stake

Europe is the scene of the latest concentration movements of large platforms. This summer, a agreement between the British Just Eat and her Dutch rival Takeaway to create a home delivery giant capable of competing worldwide. According to the announcement, the new company would be based in Amsterdam and most of the capital would be in the hands of former Just Eat shareholders.

The operation is pending official approval next December, but in the meantime a third party has already appeared that wants to truncate its plans. It is the South African fund Naspers, through the firm Prosus, who a couple of weeks ago launched an offer to buy the entire Just Eat. Naspers has interests in other competitors, such as Germany's Delivery Hero and others in India and Latin America.

A phone with the Just Eat app

A phone with the Just Eat app
(Ben Stanstall / Afp)

The market is pending the movements of the British firm, which for the moment has declined Naspers' offer. Takeaway and Just Eat, born in 1999 and 2001, are leaders in Europe with the British firm Deliveroo and the German Delivery Hero, born this decade and belonging to the latest generation of the delivery service. At the market level, the United Kingdom enjoys the most maturity. According to Adigital, the penetration of applications is 49%, compared to 15% in Germany or Spain.


China: Alibaba and Tencent fight for 32,310 million

Hina is the market where home delivery platforms generate a greater volume of business in the world. According to the IMarc consultancy, the sector moved more than 32.3 billion euros in 2018, double that in the United States. China is also the country that dominates this industry in Asia. Cup 70% of the total, followed by India, where new platforms begin to emerge. China's leadership responds to its large population, the high use of mobile phones and the growth of its economy, says IMarc.

Alibaba and Tencent fight for everything: internet, payments and deals

Alibaba and Tencent fight for everything: internet, payments and deals
(Shiho Fukada)

In this gigantic market, two platforms are protagonists:, acquired last year by Alibaba (the Chinese e-commerce platform), and Meituan Weimei, backed by the technological giant Tencent. Meituan is a superapp It also offers services to book hotels, buy tickets for cultural events and meet offers of products of all kinds. According to the consultancy iiMedia, and Meituan share, almost equally, 80% of the market.

15.7 billion

United States: fierce competition between three groups

As in any digital business, Silicon Valley is essential in the birth of home delivery platforms. The companies that lead the market in the United States, DoorDash, Uber Eats and Postmates, were born in San Francisco. Grubhub is from Chicago. It is difficult to determine who currently dominates the US market.

A backpack of Uber Eats in Ukraine

A backpack of Uber Eats in Ukraine
(Valentyn Ogirenko / Reuters)

Until a couple of years ago, Grubhub was the industry leader, but recently, DoorDash and Uber Eats are stealing part of the cake. There have also been concentration movements. Last year, there were rumors of merger between Postmates and DoorDash, and this summer, DoorDash acquired Caviar.

For its part, Uber Eats has gone from representing 2% to 13% of Uber's global revenues in two years. Amazon, the e-commerce giant, has also tried it on its own with Amazon Restaurants, but the play did not go well, and closed the service after four years of activity. The company has led, yes, a round of 500 million euros in Deliveroo. You do not want to miss the opportunities offered by the sector.

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